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.

French VAT

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.

Do You Need a Local Fiscal Representative?

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.

Compliance with French VAT

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).

What can we do for you?

As a tax partner for Amazon, we provide VAT services across multiple countries.

Our tax experts hail from five major language areas, so you need not worry about communication barriers.

Our free consultancy service can tailor solutions to your specific situation.

Our tax team will help you minimise penalties and avoid complications.

Contact our experts to support your global business expansion journey.

Budget 2024 Insights

Major Highlights from the 2024 Autumn Budget

This week, on 30th October, the Labour Party unveiled its first budget since coming into power.

Chancellor Rachel Reeves introduced a budget in the Autumn Statement covering a wide array of topics, including taxation, spending, wages, and pensions.

Many of the budget’s elements are likely to have a direct impact on you and your finances.

Minimum Wage Raised to £12.21

The Chancellor confirmed that the minimum wage for those aged 21 and above will increase by 6.7% starting in April 2025.

Rising from £11.44 to £12.21, this equates to an annual salary of £22,222 for an employee working 35 hours per week.

The Treasury stated that the minimum wage increase for those under 21 is the largest on record. This also marks the first step towards establishing a unified minimum wage standard for all adults.

Employer National Insurance Contribution to Rise by 1.2%

The Chancellor announced an increase in the amount of National Insurance Contributions paid by employers.

From April 2025, this rate will rise to 15%.

Additionally, the threshold for employer contributions will lower from £9,100 per year to £5,000.

This measure is projected to generate £25 billion annually for the government.

Increase in Capital Gains Tax

The Treasury announced that both the lower and higher rates of Capital Gains Tax will be increased.

The lower rate will go from 10% to 18%, and the higher rate will increase from 20% to 24%.

The current rates will remain until April 2025.

This is expected to raise £2.5 billion for the Labour government.

Personal Income Tax Threshold Freeze to End

Since 2022, the personal income tax threshold has been frozen at £12,570.

This means that income over this threshold is subject to various levels of income tax.

The freeze on the income tax threshold implies that, as wages rise, individuals will end up paying more income tax.

To address this, the Treasury plans to adjust the personal income tax threshold in line with inflation starting from the 2028–2029 tax year.

Bus Fares to Rise in Multiple Regions

The Chancellor confirmed that single bus fares across multiple regions will increase from December 2025.

Currently capped at £2 per journey, the price will rise to £3.

It is reported that the fare increase will generate £650 million for transport departments across the country to improve connectivity in urban areas.

Pensions Annual Allowance

The pensions annual allowance is the maximum amount of pension savings that UK residents can contribute each year without incurring extra taxes.

The current standard annual allowance in the UK is £60,000, and the lifetime allowance for pensions has been abolished.

This significantly reduces tax pressure on high earners, allowing them to save more for retirement.

However, Labour might amend the current standard annual allowance and reconsider reintroducing the lifetime allowance.

NAO says taxpayers collectively spent 798 years waiting to speak to HMRC

A report from the UK’s National Audit Office shows that HMRC’s telephone communication service is below expected standards.

In the last financial year (2022/23), taxpayers waited an average of 23 minutes, compared to 5 minutes five years ago.

In reality, it’s even more difficult to communicate with HMRC advisers, with calls being automatically disconnected.

NAO hopes for a more practical service plan from HMRC to alleviate taxpayer dissatisfaction.

Platforms and Sellers Affected

Currently, HMRC has access to sellers’ information on online platforms and collects their sales data.

This includes platforms such as Etsy, Vinted, eBay, as well as media platforms like Instagram and OnlyFans, which need to collect sales and income information from sellers and influencers to share with HMRC.

Additionally, platforms providing services such as Uber, Deliveroo, and Airbnb must also share data for any services receiving payments.

So far, online sellers have faced strict internal scrutiny by HMRC and entered into tax investigations.

Submitting Tax Returns

Since HMRC requested all sellers’ sales records from online e-commerce platforms, income from online sales will be fully exposed.

This means that all sales data becomes extremely transparent, and you need to understand everything about income tax reporting to avoid triggering a tax investigation.

For individual online sellers, if annual sales exceed £90,000, additional VAT registration is required.

If you are an online media person and receive “gifts” from fans or brands, it counts as income, with the same registration threshold applying.

Penalties

Firstly, once HMRC initiates a tax investigation into the store, it requests all online sales data and tax evidence. HMRC has the authority to request that the platform close the store until evidence is provided.

Secondly, during the tax investigation, online selling platforms have “joint responsibility” and are required to cooperate in providing all seller information.

When HMRC confirms tax evasion by the store, it will face a penalty of 100% of the tax owed.

Serious cases will also face prosecution and unlimited fines.

HMRC has revealed that a highly rated restaurant in Manchester owes hundreds of thousands of pounds in taxes

HMRC said one of Manchester’s highly rated restaurants owes hundreds of thousands of pounds in taxes.

Moreover, businesses and individuals in Greater Manchester will be listed as “deliberate tax defaulters” once their tax debts exceed £25,000.

This includes nearly ten businesses or individuals such as soft drink wholesalers and real estate companies.

Currently, HMRC has made this public and is awaiting further leads to recover the debts as much as possible.

Free childcare applications for a new age group will open this Sunday

Starting this Sunday, working parents in England with children aged nine months can apply for up to 15 hours of free childcare per week.

Applications for this age group will be granted from September.

Starting September 2025, once eligible, all working parents with children under five will be able to apply for up to 30 hours of free childcare per week.

This scheme currently only applies to the England region, while other regions can check local tax policies.