If you’re running a business and planning to expand into France, you’ll want to pay attention to tax matters.
On one hand, you’ll need to consider Value Added Tax (VAT) to ensure compliance with French tax regulations.
On the other hand, France is gearing up for a full-scale reform, including the official implementation of e-invoicing next year.
French Value Added Tax (VAT)
For businesses operating from outside France, once you engage in local trade, VAT registration becomes necessary.
EU companies involved in remote sales to French consumers should take note of the VAT registration threshold.
The currently stands at €35,000 annually.
The standard VAT rate in France is 20%, applicable to most goods and services.
Do You Need a Local Fiscal Representative?
This often depends on where your company is registered.
If your business is from an EU member state, you won’t need a local financial representative in France.
Non-EU companies, however, must appoint a financial representative who shares joint liability.
Once VAT registration is confirmed, the financial representative will work alongside your business for registration and reporting.
Compliance with French VAT
Upon obtaining a VAT number, your business must bear and adhere to corresponding responsibilities:
- This includes keeping a watchful eye on the ongoing e-invoicing reform in France and complying with VAT e-invoicing standards.
- Other obligations involve maintaining financial records for at least 10 years,
- Using recognized foreign exchange rates.
- Submitting VAT returns in a timely manner (frequency varies depending on the circumstances).
How We Can Help
As an Amazon tax partner, we offer VAT services across multiple countries.
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Get in touch with our experts to facilitate your global business expansion.