VAT Registration in France

If you are running a business and planning to expand into France, there are some tax considerations to keep in mind.
On one hand, you need to address VAT issues to ensure compliance with French tax regulations.
On the other hand, France plans to officially implement electronic invoicing and undergo a comprehensive reform starting next year.

For businesses outside of France, once you start trading locally, you will need to register for VAT.

EU businesses making remote sales to French consumers must be aware of the VAT registration threshold.

According to current regulations, the VAT registration threshold is €35,000 per year.

The standard VAT rate in France is 20%, applicable to most goods and services.

Our clients often find this question puzzling; the answer depends on where your company is registered.

If your business is based in an EU member state, you do not need a local fiscal representative or agent in France.

However, if you are a non-EU business, you will require a fiscal representative who bears joint liability.

Once your business confirms VAT registration, the fiscal representative will need to assist with the registration and filings.

When a business obtains a VAT number, it must take on and adhere to the corresponding responsibilities.

Stay updated on the progress of France’s electronic invoicing reform to comply with VAT electronic invoicing standards.
Maintain financial records for at least 10 years, with as much detail as possible.
Use approved foreign currency exchange rates.
Submit VAT returns on time (the frequency varies depending on the circumstances).