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When do VAT rules in France apply?
VAT rules in France apply when the place of supply is France and the transaction is taxable there. For foreign businesses, the practical trigger is not simply having French customers. It is carrying out an operation that French law treats as taxable or reportable in France. VAT in France guide gives key rates and thresholds.
- Sales of goods delivered in France.
- Intra-Community acquisitions made in France.
- Exports or intra-Community supplies from France.
- Imports into France.
- Stock held in France, including fulfilment or marketplace stock.
- B2C sales where French VAT is due.
- Certain services taxable in France.
A French VAT number gives access to French VAT reporting, import VAT reverse charge and, when required, e-reporting.
VAT rates in France
France applies four main VAT rates: 20%, 10%, 5.5% and 2.1%. The correct rate depends on the product or service, not on the customer country.
| VAT rate | Main use cases |
|---|---|
| 20% | Standard rate for most goods and services |
| 10% | Passenger transport, hotels, restaurants, some renovation work and certain cultural or leisure services |
| 5.5% | Most food products, books, certain energy renovation work and equipment for disabled persons |
| 2.1% | Reimbursed medicines, certain press publications and specific cultural cases |
The EU VAT rates table is useful for benchmarking, but France-specific classification must still be checked.
When must a foreign company register for VAT in France?
A foreign company must register for VAT in France when it carries out transactions requiring a French VAT number or French VAT returns. Registration is usually required when the business imports goods, stores goods in France, sells goods located in France, ships goods from France to another EU Member State, makes taxable supplies in France, or needs to file CA3 returns.
For B2B supplies to a VAT-registered customer, reverse charge can apply. In that case, the French customer accounts for VAT, and the foreign supplier may not need to charge French VAT for that specific transaction.
EU businesses, non-EU businesses and fiscal representation
EU businesses can register directly or appoint an agent, while many non-EU businesses need a fiscal representative in France. A fiscal representative deals with the French tax authorities, files VAT obligations and can be held liable for VAT debts in cases covered by the mandate.
| Company situation | VAT representative rule |
|---|---|
| Established in another EU Member State | No compulsory fiscal representative |
| Established outside the EU | Fiscal representative usually required |
| Established in a country with mutual assistance arrangements | Exemption may apply, but an agent is often still recommended |
| No taxable transaction in France | No registration if no French VAT number or return is required |
VAT returns in France: CA3 filing and payment
The standard French VAT return for foreign businesses is the CA3. Foreign companies under the normal regime usually file online with the Foreign Business Tax Department.
| Regime | Who it concerns | Filing deadline |
|---|---|---|
| Monthly normal regime | Regular taxable transactions in France | By the 19th of the following month |
| Quarterly normal regime | Businesses declaring less than EUR 4,000 VAT due per year | By the 19th of the month following the quarter |
| Import VAT reverse charge | VAT-identified importers | CA3 filing date fixed on the 24th for import VAT purposes |
The CA3 VAT return in France reports output VAT, deductible VAT, intra-Community acquisitions, imports and VAT payable or refundable.
Import VAT reverse charge in France
Import VAT reverse charge is mandatory and automatic for businesses identified for VAT in France. Since 1 January 2022, import VAT is no longer paid upfront to customs by VAT-identified businesses. It is collected and deducted on the CA3 return.
This protects cash flow, but it creates a reconciliation obligation. The pre-filled import VAT amount must be checked against customs data, import entries and purchase records.
OSS, IOSS and French VAT registration
OSS can simplify B2C e-commerce, but it does not replace French VAT registration in every case. The EU-wide threshold for intra-EU distance sales and cross-border TBE services is €10,000. OSS does not remove French VAT registration when stock is held in France, goods are imported into France, or local French transactions require CA3 reporting.
IOSS can be used for distance sales of imported goods not exceeding EUR 150 per consignment. For other e-commerce cases, the OSS VAT scheme and French VAT registration must be analysed together.
E-reporting for foreign companies from 2026
Foreign companies without a permanent establishment in France enter the e-reporting reform from 1 September 2026 or 1 September 2027 depending on their size and role. The reform concerns transaction data and, for some supplies, payment data.
| Company profile | E-reporting start date |
|---|---|
| Large enterprises and intermediate-sized enterprises selling goods or services | 1 September 2026 |
| Micro-enterprises, VSEs and SMEs selling goods or services | 1 September 2027 |
| Buyers or customers liable for VAT under reverse charge or intra-Community acquisitions | 1 September 2027 |
VAT refunds and deductible VAT in France
VAT paid in France can be recovered only when it is deductible and properly documented. The method depends on whether the business is VAT-registered in France, established in the EU, or established outside the EU.
For non-EU businesses using the 13th Directive refund route, the French tax administration applies minimum refund amounts of EUR 400 for quarterly claims and EUR 50 for annual claims. The claim must be filed by 30 June of the year following the year concerned. A French VAT recovery claim should be checked before submission.
Common VAT mistakes in France
- Charging 20% when a reduced rate applies, or the opposite.
- Treating OSS as a replacement for French VAT registration.
- Forgetting CA3 zero returns.
- Not reconciling import VAT reverse charge data.
- Using an EU VAT number when a French VAT number is required.
- Assuming B2B reverse charge applies without checking the customer VAT status.
- Missing e-reporting preparation before 2026 or 2027.
FAQ
What is the standard VAT rate in France?
The standard VAT rate in France is 20%. It applies to most goods and services unless a reduced rate is provided by French law. Reduced rates of 10%, 5.5% and 2.1% apply only to specific categories.
Do foreign companies need a French VAT number?
Yes, when they carry out transactions requiring French VAT registration, such as imports, stock in France, local taxable sales, intra-Community supplies from France or CA3 reporting. For cross-border B2B services, reverse charge may avoid French VAT registration.
Is a fiscal representative mandatory in France?
A fiscal representative is generally mandatory for non-EU companies carrying out taxable operations in France, unless an exemption applies because of mutual assistance arrangements. EU companies do not need a compulsory representative, but they can appoint an agent.
Can OSS replace French VAT registration?
OSS can replace multiple local VAT registrations for some B2C distance sales, but not when the business stores goods in France, imports into France, or carries out French domestic taxable transactions. In those cases, French VAT registration may still be required.
When is the French CA3 VAT return due?
Foreign businesses under the monthly normal regime file CA3 returns by the 19th of the following month. Quarterly filing is possible when annual VAT due is below EUR 4,000. For import VAT reverse charge, the CA3 deadline is fixed on the 24th.
What changes with French e-reporting?
E-reporting requires certain VAT transaction and payment data to be sent to the French tax authority. Large and intermediate-sized foreign businesses without a permanent establishment start on 1 September 2026. Smaller businesses and buyer-side reverse-charge cases start on 1 September 2027.
Countries concerned
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