VAT applicable to trade in services within the European Union

Verified 02 December 2025 - Entreprendre Public Service / Directorate of Legal and Administrative Information (Prime Minister)

Taxation for VAT purposes of services provided between two Member States the EU varies depending on whether a company sell or buy those benefits. The tax system the imposition of the parties, whether or not a Intra-Community VAT number or the status of the customer (taxable or not) are also parameters directly influencing the applicable rules.

Purchase of services

When a company taxable person VAT and established in France buy the provision of services to a provider (seller) located in another Member State of the EUHowever, it must then comply with a number of VAT rules.

First of all, these rules differ according to the tax regime of the french client company : this company may be subject to a actual VAT arrangements or to the exemption from VAT.

For each of these tax regimes, the concrete rules to be respected are then determined by all of the following factors:

  • Country of taxation (i.e. the criterion of territoriality of VAT)
  • Nature or characteristics the provision of services
  • Ownership or not by the seller of a Intra-Community VAT number in the customer's country.

Identify the country of taxation for VAT

Determining the country of taxation is the first step. This makes it possible to identify the State in which the tax will have to be repaid and the VAT rate applicable to the supply.

Country in which VAT is in principle taxable

When a business customer taxable person buys a supply of services from a seller in another Member State, the VAT due is in principle that of the State in which the customer is established.

If, for example, the customer is a taxable company established in France, the service is subject to French VAT.

Special cases

However, because of their nature or characteristics, certain services may be subject to derogating rules and the country of taxation may then be different.

In the presence of one of these particular cases, it doesn't matter whether the customer is subject or notVAT may then be due:

  • Either in the State of salesman
  • Either in the State of customer, taxable or not.
  • Either in a other EU State, in which neither the seller nor the customer is established.

These exceptions include:

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Short-term rental of a means of transport with availability in France

State in which VAT is due

VAT is due in the State in which the means of transport was effectively and physically made available to the customer, whether or not the latter is subject to VAT. If, for example, a customer has taken possession of his rental vehicle in France, VAT is due in France, regardless of the State in which the seller or customer is established.

The means of transport concerned are, for example, the following: motor vehicle, motorcycle, bicycle, caravan, boats, aircraft, military vehicle, agricultural vehicle, etc.

Rentals concerned

Such taxation in the country where the means of transport has been made available presupposes that the duration of the lease is limited in the following proportions:

  • Or, for a means of maritime transport, a maximum period of 90 days
  • Or, for any other means of transport, a maximum period of 30 days

FYI  

It may happen that multiple lease agreements relating to the same means of transport follow one another. In this case, the “short duration” is calculated in adding the duration of each contract separated by less than 48 hours. Therefore, if a rental agreement is signed more than 48 hours after the end of the previous one, then its duration is not added to that of the previous contracts.

Provision of services related to an immovable

State in which VAT is due

The VAT due shall be that of the Member State in which the immovable property is situated. It does not matter whether the customer is subject to VAT or not.

Provision of services concerned

The benefits covered by this derogating rule are:

  • Services of experts and real estate agents (valuation, intermediation, land demarcation...)
  • Provision of housing within the hotel sector or sectors with a similar function (holiday camps, camping site...)
  • Obtaining rights of use of a building and services to organize the execution of real estate works (for example, a service performed by an architect)

Provision of services by a travel agency

State in which VAT is due

VAT is due:

  • Either in the Member State in which the provider has its seat (if the service is not provided from a permanent establishment situated in another State).
  • Either in the State in which the seller has a permanent establishment, if the service is provided from that establishment (even if its registered office is in another State)

For example, VAT is payable in France when a travel agency with its registered office in Belgium provides a tourist service to a Spanish customer from a permanent establishment in France.

FYI  

Any part of the supply sold that is performed outside the EU is exempt from VAT.

Provision of services concerned

In order for it to be an exception to the rule, the benefit must be a single service delivery whose conditions are as follows:

  • Travel : the service must allow the realization of a stay or event including at least one transport and / or accommodation for a global and flat rate
  • Staged : the supply must include supplies of goods or services made by other taxable persons (professionals), and not by the seller himself or by means belonging to him.

Access to cultural, sporting, scientific or educational events

State in which VAT is due

VAT is due in the country in which the demonstration actually takes place.

Provision of services concerned

It must be a service consisting in providing a taxable customer one access for a cultural, artistic, sporting, scientific, educational, entertainment or similar event (e.g. a fair or exhibition). However, this access must not be intended for a demonstration virtual (for example, an online broadcast of a show or conference).

Passenger Transportation

A passenger transport service is taxable in a Member State only up to transport fraction located in that State. If, for example, a part of the journey is in France, then only the part of the price corresponding to that part is taxable in France.

Sales to consume on site

State in which VAT is due

Sales to be consumed on site are taxed VAT in the country in which they are materially executed.

Provision of services concerned

The sales to be consumed on site consist of supplying both drinks and food intended for human consumption. These include restaurants, bars, cafeterias, cafés, but also establishments offering drinks and food in other establishments (museums, concert halls...)

In these particular cases, other consequences are possible, including the following:

  • Change in country of taxation
  • Modification of the terms of billing (TTC: titleContent or HT: titleContent)
  • Changing the Rules of payment of VAT (collection by the seller or reverse charge by the customer)
  • Changes to reporting arrangements : the VAT declaration following the purchase of a service is completed differently depending on whether the transaction is taxable or not in France

Invoicing and paying VAT

The rules for invoicing and paying tax vary depending on whether the seller has a Intra-Community VAT number in the State of the taxable customer.

FYI  

To complete a transaction within the EU, a company must be in possession an intra-Community VAT number in his country.

However, it may also request an intra-Community VAT number in other Member States in order to facilitate certain exchanges with the tax administrations of these States (declarations, payment of VAT, etc.).

Where the provision of services is subject to the French VAT, the rules are as follows:

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Seller with a French VAT number

Invoicing including VAT and collection by the seller

The seller must bill this french VAT to the french client company who thus receives an invoice TTC: titleContent. The seller, who is identified in France, therefore collects the tax and remits it to the French tax administration.

Seller without a French VAT number

HT invoicing and reverse charge by the customer

The fact that the seller does not have a French VAT number obliges him to bill customer for an amount HT: titleContent. The VAT will therefore not be collected by the seller, but self-liquidated by the client company. The invoice must include the mention « reverse charge ».

When VAT is due in France, for example, reverse charge means that the buyer established in France collection French VAT on behalf of the tax authorities and the reverse.

If it has a right to deduct, it may deduct, when declaring VAT, the amount of VAT self-assessed.

For more information, you can consult our fact sheet detailing the deduction of VAT on business purchases.

Mandatory mention of the customer's intra-Community VAT number

The customer must also have an intra-Community VAT number at least in his own country. This allows him to make VAT returns related to the supply.

In France, the tax administration automatically assigned an intra-Community VAT number for any company in France subject to a real VAT system at the time of registration.

This number must appear on each invoice or company business document.

To learn more about VAT registration, you can visit our “ Intra-Community VAT number ».

Deduct VAT

The French company customer subject to a actual tax regime benefits in principle from a right to deduct VAT. It can therefore deduct the VAT paid and obtain the refund by the tax authorities. This deduction is made directly on the VAT return.

More information is available on our detailed sheet deduction of VAT on business purchases.

Complete and submit your VAT return

Complete your VAT return

The French company that purchased a service from a provider (seller) located in the EU must deposit periodically its VAT returns. The forms are completed differently depending on the VAT taxation system to which the reporting company is subject:

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Company subject to the normal real regime

The reporting arrangements differ depending on whether or not it is a general case of taxation (i.e. VAT taxation) in the country of the taxable customer).

The following rules apply to benefits within the EU carried out for the benefit of a taxable customer established in France.

Taxable sales in France (general case)

On its monthly or quarterly VAT return No. 3310-CA3, the French client company subject to the normal real speed shall indicate:

  • Base HT: titleContent purchased services : row A3 (‘Purchases of services from a taxable person not established in France’) if the provider(seller) is established in a other EU State, or row A2 (‘Other taxable transactions’) if the provider is established outside the EU
  • VAT basis and amount : all services purchased must be indicated in the appropriate sub-category (for example “Transactions carried out in metropolitan France”, or “Transactions taxable at a particular rate”, etc.) to lines 08 to 13 and be grouped according to their respective rates
  • Amount of deductible VAT in respect of all the services purchased (line 20 ‘Other goods and services’)

A declaration must be filed for each period (monthly or quarterly, as the case may be) during which the company provided services taxable for VAT in France.

More information about this formality is available on the “ Declare and pay VAT »

Non-taxable sales in France (special cases)

In certain specific cases, services, by reason of their nature or specific features, may not be taxable in the State of the taxable customer.

This may include the following services:

  • Short-term rental of a means of transport with availability in France
  • Provision of services related to an immovable
  • Provision of services by a travel agency
  • Access to events (ticketing)
  • Passenger Transportation
  • Sales to consume on site

On its monthly or quarterly VAT return No. 3310-CA3, the French client company subject to the normal real speed shall indicate:

  • Base HT: titleContent purchased services : row B4 (“Purchases of services from a taxable person not established in France, Article 283-1 of the CGI”) if the provider (seller) is established in a other EU State
  • VAT basis and amount : all services purchased must be indicated in the appropriate sub-category (for example “Transactions carried out in metropolitan France”, or “Transactions taxable at a particular rate”, etc.) to lines 08, 09 or 9B and be grouped according to their respective rates
  • Amount of deductible VAT in respect of all the services purchased (line 20 ‘Other goods and services’)

A declaration must be filed for each period (monthly or quarterly as the case may be) during which the company purchased services in the EU, even if they are taxable in another Member State.

More information about this formality is available on the “ Declare and pay VAT »

Company subject to the simplified real regime

The reporting arrangements differ depending on whether or not it is a general case of taxation (i.e. VAT taxation) in the country of the taxable customer).

The following rules apply to benefits within the EU carried out for the benefit of a taxable customer established in France.

Taxable sales in France (general case)

On its annual declaration No. 3517-CA12, the French client company subject to the simplified real regime shall indicate:

  • Base HT: titleContent and amount of VAT services purchased: AC line (‘Purchases of services from a taxable person not established in France’) if the provider (seller) is established in a other EU State, or line 13 (‘Other taxable transactions’) if the provider is established outside the EU
  • Amount of deductible VAT in respect of all the services purchased (line 20 ‘Deductions on invoices’ or line 23 ‘deductible VAT on fixed assets’)

A declaration must be filed for each year in the course of which the company supplied taxable services for VAT purposes in France.

More information about this formality is available on the “ Declare and pay VAT »

Non-taxable sales in France (special cases)

In certain specific cases, services, by reason of their nature or specific features, may not be taxable in the State of the taxable customer.

This may include the following services:

  • Short-term rental of a means of transport with availability in France
  • Provision of services related to an immovable
  • Provision of services by a travel agency
  • Access to events (ticketing)
  • Passenger Transportation
  • Sales to consume on site

On its annual declaration No. 3517-CA12, the French client company subject to the simplified real regime shall indicate:

  • Base HT: titleContent and amount of VAT services purchased: line AB (‘Purchases of services from a taxable person not established in France’) if the provider shall be established in a other EU State
  • Amount of deductible VAT in respect of all the services purchased (line 20 ‘Deductions on invoices’

A declaration must be filed for each year in the course of which the company purchased services in the EU, even if they are taxable in another Member State.

More information about this formality is available on the “ Declare and pay VAT »

Company subject to the simplified system for agriculture

The reporting arrangements differ depending on whether or not it is a general case of taxation (i.e. VAT taxation) in the country of the taxable customer).

The following rules apply to benefits within the EU carried out for the benefit of a taxable customer established in France.

Taxable sales in France (general case)

On its annual declaration No. 3517-AGR CA12A, the French client company subject to the simplified system for agriculture shall indicate:

  • Base HT: titleContent and amount of VAT services purchased: line 9C (‘Purchases of services from a taxable person not established in France’) if the provider (seller) is established in a other EU State, or line 12 (‘Other taxable transactions’) if the provider is established outside the EU
  • Amount of deductible VAT in respect of all services performed (line 18 ‘Other goods and services’)

A declaration must be filed for each year in the course of which the company supplied taxable services for VAT purposes in France.

More information about this formality is available on the “ Declare and pay VAT »

Non-taxable sales in France (special cases)

In certain particular cases, services, by reason of their nature or specific features, may not be taxable in the State of the taxable customer.

This may include the following services:

  • Short-term rental of a means of transport with availability in France
  • Provision of services related to an immovable
  • Provision of services by a travel agency
  • Access to events (ticketing)
  • Passenger Transportation
  • Sales to consume on site

On its annual declaration No. 3517-AGR CA12A, the French client company subject to the simplified system for agriculture shall indicate:

  • Base HT: titleContent and amount of VAT services purchased: line 12 (‘Other taxable transactions’)
  • Amount of deductible VAT in respect of all services performed (line 18‘Other goods and services’)

A declaration must be filed for each year in the course of which the company purchased services in the EU, even if they are taxable in another Member State.

More information about this formality is available on the “ Declare and pay VAT »

How do I submit my VAT returns?

Declarations shall be completed and transmitted in a dematerialized (sending paper forms is no longer possible):

  • Either by a manual online entry forms (EFI mode). The company completes them itself, by connecting to its professional space impots.gouv.fr :

Online tax account for professionals (EFI mode)

  • Either by going through a software special exchange (EDI mode). In this case, the company or more generally its representative (for example an accountant) enters all the information required and then sends it to the administration.

These two methods of remote reporting are further detailed on the page “How to send business tax returns: EDI or EFI? »

Please note

The acquisition of a service provision within the EU gives rise to no customs formalities. The obligation to draw up a European declaration of services (OF) concerns only the company which sells provision of services in the EU.

To learn more about this, you can visit our “ Customs formalities concerning VAT on intra-Community trade in goods and services »

Identify the country of taxation for VAT

Determining the country of taxation is the first step. This makes it possible to identify the State in which the tax will have to be repaid and the VAT rate applicable to the supply.

Country in which VAT is in principle taxable

Where the provision of intra-Community services is made to a taxable customer in France (which is, for example, the case of a company in exemption from VAT), it is in principle subject to the French VAT.

Special cases

However, because of their nature or characteristics, certain services may be subject to derogating rules and the country of taxation may be different.

In the presence of one of these particular cases, it doesn't matter whether the customer is subject or notVAT may then be due:

  • Either in the State of salesman
  • Either in the State of customer, taxable or not.
  • Either in a other EU State, in which neither the seller nor the customer is established.

These exceptions include:

Répondez aux questions successives et les réponses s’afficheront automatiquement

Short-term rental of a means of transport with availability in France

State in which VAT is due

VAT is due in the State in which the means of transport was effectively and physically made available to the customer, whether or not the latter is subject to VAT. If, for example, a customer has taken possession of his rental vehicle in France, VAT is due in France, regardless of the State in which the seller or customer is established.

The means of transport concerned are, for example, the following: motor vehicle, motorcycle, bicycle, caravan, boats, aircraft, military vehicle, agricultural vehicle, etc.

Rentals concerned

Such taxation in the country where the means of transport has been made available presupposes that the duration of the lease is limited in the following proportions:

  • Or, for a means of maritime transport, a maximum period of 90 days
  • Or, for any other means of transport, a maximum period of 30 days

FYI  

It may happen that multiple lease agreements relating to the same means of transport follow one another. In this case, the “short duration” is calculated in adding the duration of each contract separated by less than 48 hours. Therefore, if a rental agreement is signed more than 48 hours after the end of the previous one, then its duration is not added to that of the previous contracts.

Provision of services related to an immovable

State in which VAT is due

The VAT due shall be that of the Member State in which the immovable property is situated. It does not matter whether the customer is subject to VAT or not.

Provision of services concerned

The benefits covered by this derogating rule are:

  • Services of experts and real estate agents (valuation, intermediation, land demarcation...)
  • Provision of housing within the hotel sector or sectors with a similar function (holiday camps, camping site...)
  • Obtaining rights of use of a building and services to organize the execution of real estate works (for example, a service performed by an architect)

Provision of services by a travel agency

State in which VAT is due

VAT is due:

  • Either in the Member State in which the provider has its seat (if the service is not provided from a permanent establishment situated in another State).
  • Either in the State in which the seller has a permanent establishment, if the service is provided from that establishment (even if its registered office is in another State)

For example, VAT is payable in France when a travel agency with its registered office in Belgium provides a tourist service to a Spanish customer from a permanent establishment in France.

FYI  

Any part of the service sold that is performed outside the EU is exempt from VAT.

Provision of services concerned

In order for it to be an exception to the rule, the benefit must be a single service delivery whose conditions are as follows:

  • Travel : the service must allow the realization of a stay or event including at least one transport and / or accommodation for a global and flat rate
  • Staged : the supply must include supplies of goods or services made by other taxable persons (professionals), and not by the seller himself or by means belonging to him.

Access to cultural, sporting, scientific or educational events

State in which VAT is due

VAT is due in the country in which the demonstration actually takes place.

Provision of services concerned

It must be a service consisting in providing a taxable customer one access for a cultural, artistic, sporting, scientific, educational, entertainment or similar event (e.g. a fair or exhibition). However, this access must not be intended for a demonstration virtual (for example, an online broadcast of a show or conference).

Passenger Transportation

A passenger transport service is taxable in a Member State only up to transport fraction located in that State. If, for example, a part of the journey is in France, then only the part of the price corresponding to that part is taxable in France.

Sales to consume on site

State in which VAT is due

Sales to be consumed on site are taxed VAT in the country in which they are materially executed.

Provision of services concerned

The sales to be consumed on site consist of supplying both drinks and food intended for human consumption. These include restaurants, bars, cafeterias, cafés, but also establishments offering drinks and food in other establishments (museums, concert halls...)

In these particular cases, other consequences are possible, including the following:

  • Change in country of taxation
  • Modification of the terms of billing (TTC: titleContent or HT: titleContent)
  • Change in VAT payment rules (collection by the seller or reverse charge by the customer)
  • Modification of the reporting rules: the VAT return following the purchase of a service is completed differently depending on whether the transaction is taxable or not in France

Invoicing and paying VAT

The rules for invoicing and paying tax vary depending on whether the seller has a Intra-Community VAT number in the State of the taxable customer.

FYI  

To complete a transaction within the EU, a company must have an intra-Community VAT number in its country.

However, it may also request an intra-Community VAT number in other Member States in order to facilitate certain exchanges with the tax administrations of those States (declarations, payment of VAT, etc.).

Where the provision of services is subject to the French VAT, the rules are as follows:

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Seller with a French VAT number

Invoicing including VAT and collection by the seller

The seller must bill this french VAT to the french client company who thus receives an invoice TTC: titleContent. The seller, who is identified in France (by means of his French intra-Community VAT number), collects the tax and remits it to the French tax authorities.

Seller without a French VAT number

HT invoicing and reverse charge by the customer

The fact that the seller does not have a French VAT number obliges him to bill customer for an amount HT: titleContent. The VAT will therefore not be collected by the seller, but self-liquidated by the client company. The invoice must include the mention « reverse charge ».

When VAT is due in France, for example, reverse charge means that the buyer established in France collection French VAT on behalf of the tax authorities and the reverse.

For more information, you can consult our fact sheet detailing the deduction of VAT on business purchases.

Enjoying the right to deduct VAT

No right to deduct

Being subject to the regime of exemption from VAT, the French client company does not have the right of deduction VAT on business purchases. In other words, it cannot obtain a refund of the VAT it has paid on the services purchased.

However, this right to deduct can be obtained by opting for the normal real tax regime.

Possible option for the actual VAT regime

The company subject to the exemption system on the basis of VAT may however opt for the normal real VAT regime and thus obtain a right to deduct of VAT.

The rules on VAT-exempt traders will no longer apply to the company. These are the rules concerning professionals subject to the normal real speedof taxation which will be applicable. These rules consist, for example, in declare periodically the amount of services purchased and the amount of VAT due on this occasion (monthly or quarterly VAT declaration No. 3310-CA3).

The option for the normal real speed VAT value added for the remainder of the year and the following 2 years. For example, an option exercised on May 4, 2025 will continue to take effect until the end of 2027.

It shall take effect on the first day of the month in which it is declared.

The option is renewed tacitly. The company which has opted for this real regime can therefore renounce it only by sending a written to the relevant EIS. That request, known as ‘ denunciation ’ must be carried out by 31 October of the year preceding that of the tacit renewal. For example, in the case of an option taken on May 4, 2025, the request for denunciation must be made in writing by October 31, 2027.

The company must request this option via its messaging on its business account impots.gouv.fr.

Online tax account for professionals (EFI mode)

Request an intra-Community VAT number beforehand

When purchasing an intra-Community supply of services, the French customer subject to the exemption on the basis of VAT is then obliged to perform certain reporting formalities.

The prior detention of a Intra-Community VAT number is essential to be able to carry out these steps.

In France, the tax administration does not automatically assign this number applies to companies duty-free on the basis of VAT (unlike those subject to a real VAT system). This number must therefore be requested.

The company must apply for an intra-Community VAT number online via the messaging of your business account on the website impots.gouv.fr. To do this, you must click on “Messaging”, then “Write”, then “VAT” and finally: “I request an intra-Community VAT number”.

Online tax account for professionals (EFI mode)

This number must appear on each invoice or company business document.

To learn more about VAT registration, you can visit our “ Intra-Community VAT number ».

Complete and submit your VAT return

Complete your VAT return

Where it has purchased a supply of services from a provider situated in the EU, the client company subject to the exemption on the basis of VAT is obliged to submit a VAT return (monthly or quarterly VAT return No. 3310-CA3).

A declaration must be filed for each period (monthly or quarterly as the case may be) during which the company purchased a service in the EU taxable for VAT purposes in France.

The reporting arrangements may vary depending on whether VAT is due in France or in another Member State.

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When VAT is due in France (general case)

On its monthly or quarterly VAT return No. 3310-CA3, the VAT-free company must indicate:

  • Base HT: titleContent purchased services : row A3 (‘Purchases of services from a taxable person not established in France’) if the provider (seller) is established in a other EU State, or row A2 (‘Other taxable transactions’) if the provider is established outside the EU
  • VAT basis and amount : all services purchased must be indicated in the appropriate sub-category (for example “Transactions carried out in metropolitan France”, or “Transactions taxable at a particular rate”, etc.) to lines 08, 09 or 9B and be grouped according to their respective rates
  • Amount of deductible VAT in respect of all the services purchased (line 20 “Other goods and services”), if the company has opted for the normal real regime in order to benefit from the right to deduct

A declaration must be filed for each period (monthly or quarterly as the case may be) during which the company purchased services taxable for VAT in France.

More information about this approach is available on the “ Declare and pay VAT »

When VAT is not due in France (special case)

In certain specific cases, the supply is taxable in a Member State which is not that of the taxable customer.

This may include the following services:

  • Short-term rental of a means of transport with availability in France
  • Provision of services related to an immovable
  • Provision of services by a travel agency
  • Access to events (ticketing)
  • Passenger Transportation
  • Sales to consume on site

On its monthly or quarterly VAT return No. 3310-CA3, the VAT-free company must indicate:

  • Base HT: titleContent purchased services : Line B4 ‘Intra-Community purchases of goods or services from a taxable person not established in France (Article 283-1 of the CGI)’
  • VAT basis and amount : all services purchased must be indicated in the appropriate sub-category (for example “Transactions carried out in metropolitan France”, or “Transactions taxable at a particular rate”, etc.) to lines 08, 09 or 9B and be grouped according to their respective rates
  • Amount of deductible VAT in respect of all the services purchased (line 20 “Other goods and services”), if the company has opted for the normal real regime in order to benefit from the right to deduct

A declaration must be filed for each period (monthly or quarterly as the case may be) during which the company purchased services in the EU, even if they are taxable in another Member State.

More information about this approach is available on the “ Declare and pay VAT »

How do I submit my VAT returns?

VAT returns shall be completed and transmitted in a dematerialized (sending paper forms is no longer possible):

  • Either by a manual online entry forms (EFI mode). The company completes them itself, by connecting to its professional space impots.gouv.fr :

Online tax account for professionals (EFI mode)

  • Either by going through a software special exchange (EDI mode). In this case, the company or more generally its representative (for example an accountant) enters all the information required and then sends it to the administration by teletransmission.

These two methods of remote reporting are further detailed on the page “How to send business tax returns: EDI or EFI? »

Please note

The acquisition of a service provision within the EU gives rise to no customs formalities. The obligation to draw up a European Service Declaration (ESD) concerns only the company that sells a service in the EU.

To learn more about this, you can visit our “ Customs formalities concerning VAT on intra-Community trade in goods and services »

Sales of services

In the case of a sale of services, the applicable rules depend mainly on the following criteria:

  • Tax regime of the seller : the reporting formalities vary according to the tax regime to which the seller is subject. For example, the tax system can be a actual regime or the exemption from VAT
    To learn more about the different tax regimes you can consult the pages “ Declare and pay VAT ’ or ‘ VAT: what is the simplified system for agriculture? ».
  • Country in which the tax is due : this criterion, also called the criterion of territoriality tax may vary depending on certain parameters, such as customer status (taxable or not VAT) or, in certain cases, the nature or characteristics of the supply.

Other elements, such as whether or not a person Intra-Community VAT number in another Member State may also determine the methods of tax treatment of a supply of services with regard to VAT (invoicing, collection, declaration, payment, etc.).

The rules presented here concern the hypothesis that the salesman the provision of services is a professional established in France.

The sale of a service within the EU (just like the sale of property within the EU) is subject to many rules regarding VAT: invoicing, VAT rates, collection, payment of VAT, tax declarations, customs formalities...

Identify the country of taxation for VAT

In the provision of services within the EU, the Member State in which VAT is due varies depending on whether the customer is taxable or not for VAT purposes. In certain specific cases, the characteristics of the supply may make the transaction taxable in another Member State.

The identification of that State makes it possible to know in which country to pay VAT, and at what rate.

Country in which VAT is in principle taxable

In the case of sales of intra-Community services, the country of taxation varies depending on whether the customer is subject or not VAT:

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Business customer subject to VAT

Where a taxable trader sells a supply of services to a taxable business customer, the VAT due shall be that of country where this customer is established.

However, in certain specific cases, benefits may, by reason of their nature or specific features, be subject to derogating rules.

Customer not subject to VAT (professional or individual)

Where a taxable trader sells a supply of services to a non-taxable customer, it's there VAT of the seller's country that is due. For example, if a trader located in France sells a service to a particular customer located in Germany, French VAT will be applicable.

FYI  

A business customer is generally subject to VAT, although it may sometimes be exempt (which is the case of a company subject to the exemption on the basis of VAT).

Persons not subject to VAT are generally individuals.

However, in certain specific cases, benefits may, by reason of their nature or specific features, be subject to derogating rules.

Special cases

In certain situations, the rule determining the State in which VAT is taxable may vary. It doesn't matter whether the customer is subject or notVAT may then be due:

  • Either in the state of the seller
  • Either in the state of the customer, taxable or not.
  • Either in an EU state where neither the seller nor the customer is established.

These exceptions related to the nature or characteristics of the service may arise in particular in the following cases:

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Short-term rental of a means of transport with availability in France

State in which VAT is due

VAT is payable in the State in which the means of transport was effectively and physically made available to the customer, whether or not the latter is subject to VAT. If, for example, a customer has taken possession of his rental vehicle in France, VAT is due in France, regardless of the State in which the seller or customer is established.

The means of transport concerned are, for example, the following: motor vehicle, motorcycle, bicycle, caravan, boats, aircraft, military vehicle, agricultural vehicle, etc.

Rentals concerned

Such taxation in the country where the means of transport has been made available presupposes that the duration of the lease is limited in the following proportions:

  • Or, for a means of maritime transport, a maximum period of 90 days
  • Or, for any other means of transport, a maximum period of 30 days

FYI  

It may happen that multiple lease agreements relating to the same means of transport follow one another. In this case, the “short duration” is calculated in adding the duration of each contract separated by less than 48 hours. Therefore, if a rental agreement is signed more than 48 hours after the end of the previous one, then its duration is not added to that of the previous contracts.

Provision of services related to an immovable

State in which VAT is due

The VAT due shall be that of the Member State in which the immovable property is situated. It does not matter whether the customer is subject to VAT or not.

Provision of services concerned

The benefits covered by this derogating rule are:

  • Services of experts and real estate agents (valuation, intermediation, land demarcation...)
  • Provision of housing within the hotel sector or sectors with a similar function (holiday camps, camping site...)
  • Obtaining rights of use of a building and services to organize the execution of real estate works (for example, a service performed by an architect)

Provision of services by a travel agency

State in which VAT is due

VAT is due:

  • Either in the Member State in which the provider has its seat (if the service is not provided from a permanent establishment situated in another State).
  • Either in the State in which the seller has a permanent establishment, if the service is provided from that establishment (even if its registered office is in another State)

For example, VAT is payable in France when a travel agency with its registered office in Belgium provides a tourist service to a Spanish customer from a permanent establishment in France.

FYI  

Any part of the supply sold that is performed outside the EU is exempt from VAT.

Provision of services concerned

In order for it to be an exception to the rule, the benefit must be a single service delivery whose conditions are as follows:

  • Travel : the service must allow the realization of a stay or event including at least one transport and / or accommodation for a global and flat rate
  • Staged : the supply must include supplies of goods or services made by other taxable persons (professionals), and not by the seller himself or by means belonging to him.

Access to cultural, sporting, scientific or educational events

State in which VAT is due

VAT is due in the country in which the demonstration actually takes place.

Provision of services concerned

It must be a service consisting in providing a taxable customer one access for a cultural, artistic, sporting, scientific, educational, entertainment or similar event (e.g. a fair or exhibition). However, this access must not be intended for a demonstration virtual (for example, an online broadcast of a show or conference).

Passenger Transportation

A passenger transport service is taxable in a Member State only up to transport fraction located in that State. If, for example, a part of the journey is in France, then only the part of the price corresponding to that part is taxable in France.

Sales to consume on site

State in which VAT is due

Sales to be consumed on site are taxed VAT in the country in which they are materially executed.

Provision of services concerned

The sales to be consumed on site consist of supplying both drinks and food intended for human consumption. These include restaurants, bars, cafeterias, cafés, but also establishments offering drinks and food in other establishments (museums, concert halls...)

In these particular cases, other consequences are possible, including the following:

  • Change in country of taxation
  • Modification of the terms of billing (TTC: titleContent or HT: titleContent)
  • Change in VAT payment rules (collection by the seller or reverse charge by the customer)
  • Modification of the reporting rules: the VAT return following the sale of a service is completed differently depending on whether the sale was taxed or not in France
  • Obligation to apply for a VAT registration number in another State in which VAT is to be remitted, where neither the seller nor the customer is established there.

Invoicing and paying VAT

The billing rules may vary depending on the customer is subject or not, or depending on whether or not the service sold falls under one of the special cases.

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Business customer subject to VAT

General case (VAT of customer's country)

When the customer is a taxable person, the general rule is to impose VAT in Customer State. However, the arrangements may vary depending on whether or not the seller has an intra-Community VAT number in that State.

FYI  

A company may have an intra-Community VAT number in other Member States its own, in order to facilitate certain exchanges with the tax administrations of those States (declarations, payment of VAT, etc.).

If the seller has an intra-Community VAT number in the country of taxation

In some cases, a company in France may have an intra-Community VAT number in countries other than France. The rules are then as follows:

  • Billing : the French seller will issue a invoice TTC: titleContent
  • Payment of VAT : VAT is collected by the French seller, at rates in force in the customer's country. The VAT is then paid back to the tax authorities of that State.
If the seller does not have an intra-Community VAT number in the country of taxation
  • Billing : the French seller will issue a invoice HT: titleContent
  • Payment of VAT : VAT is not collected by the French seller, but self-liquidated by the client company
    Reverse charge means that the buyer established in another Member State of the EU collection the VAT of his country on behalf of his tax administration and the reverse. If he has a right to deduct, he may deduct when declaring VAT the amount of VAT self-assessed.
  • Mandatory Mention : where the customer is a taxable person established in a Member State of the EU, a french company which has supplied it with a service must indicate on its invoice the reverse charge.

FYI  

If the customer is a taxable person established outside the EU, the French company must indicate on its invoice: “ VAT not applicable – Art. 259-1 of the CGI on his invoice »

Special cases (French or other Member State VAT)

In certain specific cases, the sale of a service by a French company to a taxable customer of another Member State may, by reason of its nature or characteristics, be subject to VAT of a country other than that of the customer.

This may include the following services:

  • Short-term rental of a means of transport with availability in France
  • Provision of services related to an immovable
  • Provision of services by a travel agency
  • Access to events (ticketing)
  • Passenger Transportation
  • Sales to consume on site
If the service is taxable in France

The nature or characteristics of the service may designate France as the State of taxation:

  • Billing : the French seller will issue a VAT invoice
  • Payment of VAT : VAT is collected by the French seller and remitted to the French tax administration.

Example :

A supply of services by a French company to a taxable customer established in Italy may, by exception, be taxable in France if it relates to immovable property located in France (this supply must, however, correspond to the supply of services on immovable property eligible for this derogation; it may thus be an appraisal by an expert of an apartment located in France).

If the supply is taxable in another Member State

In certain derogating cases, it may happen that the service is taxable in a State which is not neither that of the seller nor that of the taxable customer. The rules are then as follows:

  • Billing : the French seller will issue a VAT invoice, at the rate in force in that Member State, and it collects VAT
  • Payment of VAT : the VAT collected must be returned to the tax authorities of the country in which it is due. The French seller will have to register and apply for a VAT number in that State (payment via the VAT one-stop shop which avoids such registration is not possible in the case of supply to a customer liable for VAT).
    In that case, the French seller will have to make a VAT return in that State accompanied by the payment of the tax, as if he were established in that State.

Example :

A supply of services by a company in France to a taxable customer established in Italy may, by exception, be taxable in Portugal if it relates to immovable property located in that country (that supply must, however, correspond to the supply of services on immovable property eligible for this derogation; it may thus be an appraisal by an expert of an apartment located in Portugal).

Non-taxable business customer or individual customer

General case (VAT of the seller's country)

When the customer is a non-taxable person, the general rule is to impose VAT in the seller's state. The VAT treatment modalities are then as follows:

  • Billing : the French seller must bill French VAT to the customer (invoice TTC: titleContent). It collects the tax
  • Payment of VAT : the VAT thus collected must be returned to the French tax administration.

Please note

Where the customer is not a taxable person, it is always the taxable seller who is liable for VAT.

Special cases (VAT of another Member State)

In certain particular cases, the sale of a service by a French company to a non-taxable customer may, by reason of its nature or characteristics, be subject to VAT of a country other than that of the seller. This may be the case, for example, if the service relates to a building located in the client's State or even another EU Member State.

This may include the following services:

  • Short-term rental of a means of transport with availability in France
  • Provision of services related to an immovable
  • Provision of services by a travel agency
  • Access to events (ticketing) (ticket sales... (case of B2C)
  • Passenger Transportation
  • Sales to consume on site

The consequences for invoicing and payment of VAT include:

  • Billing : the French seller will issue a invoice TTC: titleContent, at the rate in force in the State of taxation and it collects VAT
  • Payment of VAT : the VAT collected must be returned to the tax authorities of the country in which it is due. The seller then has the choice:
    • Either of register and request a VAT number in the State in which VAT is due. He will then have to make a VAT declaration there accompanied by the payment of the tax, as if he were established in that State.
    • Either to proceed with the payment (and declaration) of the sale on the VAT one-stop shop. This window thus makes it possible to access simplified formalities.
Mandatory mention of the customer's intra-Community VAT number

The seller is obliged to indicate the intra-Community VAT number on each invoice or company business document. It can be the one obtained in his State, or even sometimes a number in another State if he has already requested it.

In France, the tax administration automatically assigned a french intra-community VAT number to any french company subject to a actual VAT arrangements, at the time of registration.

To learn more about VAT registration, you can visit our “ Intra-Community VAT number ».

Complete and submit your VAT return

Complete your VAT return

The French company subject to a real VAT system which sells services to customers located in the EU must deposit periodically its VAT returns.

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Business customer subject to VAT

The reporting arrangements shall be determined on the basis of two criteria:

  • Tax regime for VAT of the French service provider (the seller)
  • VAT tax status (this criterion may vary depending on the nature or characteristics of the service).
Company subject to the normal real regime

Reporting terms vary depending on the state in which the sale is taxable.

Taxable sale in the State of the taxable customer (general case)

On its monthly or quarterly VAT return No. 3310-CA3, the French company subject to the normal real speed must indicate the amount HT: titleContent of the supply (or of the cumulative VAT of intra-Community supplies sold during the month) on the line E2 (‘Other non-taxable transactions’).

A VAT return must be submitted for each period (monthly or quarterly, as the case may be) during which the company sold services within the EU.

More information about this formality is available on the “ Declare and pay VAT »

Non-taxable sale in the State of the taxable customer (special cases)

In certain specific cases, VAT is taxable in a State which is not that of the taxable professional customer.

This may include the following services:

  • Short-term rental of a means of transport with availability in France
  • Provision of services related to an immovable
  • Provision of services by a travel agency
  • Access to events (ticketing)
  • Passenger Transportation
  • Sales to consume on site

In these particular cases, the reporting formalities vary according to the State of taxation of the sale:

  • If the sale is taxable in France:
    The French company subject to the normal real speed must indicate in its declaration No. 3310-CA3 the following:
    • Base HT: titleContent services sold line: 01 ‘Sales, services’ means:
    • VAT basis and amount : all the services concerned and sold during the reference month must appear in the lines 08, 09 or 9B, or in the sub-category “Transactions taxable at a particular rate” and be grouped according to their respective rates
  • If the sale is taxable in another Member State (i.e. neither in the country of the customer nor in the country of the seller), the french company must comply with the following formalities:
    • Formalities to be carried out in France:
      The French company must indicate in its declaration No. 3310-CA3 the HT amount of all the services concerned and sold during the reference month to the row E2 ‘Other non-taxable transactions’
    • Formalities to be carried out in the State of taxation:
      The French company must register and request a VAT number in the Member State where VAT is due. She will then have to make a VAT declaration accompanied by the payment of the tax. The declaration form to be completed depends on the country concerned.
Company subject to the simplified real regime

Reporting terms vary depending on the state in which the sale is taxable.

Taxable sale in the State of the taxable customer (general case)

On its annual VAT return No. 3517-CA12, the French company subject to the simplified real regime must indicate the amount HT: titleContent from the supply (or the accumulation, before tax, of intra-Community supplies sold during the year) to the line 03 (‘Other non-taxable transactions’).

A VAT return must be submitted for each period in which the company sold services within the EU.

More information about this formality is available on the “ Declare and pay VAT »

Non-taxable sale in the State of the taxable customer (special cases)

In certain specific cases, VAT is taxable in a State which is not that of the taxable professional customer.

This may include the following services:

  • Short-term rental of a means of transport with availability in France
  • Provision of services related to an immovable
  • Provision of services by a travel agency
  • Access to events (ticketing)
  • Passenger Transportation
  • Sales to consume on site

In these particular cases, the reporting formalities vary according to the State of taxation of the sale:

  • If the sale is taxable in France:
    The French company must indicate in its declaration No. 3517-CA12 the VAT basis and amount all the services concerned and sold during the reference year. These operations must be shown on the lines 5A, 5B, 06, 6C, 09, and be grouped according to their respective rates.
  • If the sale is taxable in another Member State(i.e. neither in the country of the customer nor in the country of the seller), the service company (the seller) must comply with the following formalities:
    • Formalities to be carried out in France:
      In his statement No. 3517-CA12, the french company must indicate the HT amount of all the services concerned and sold during the reference year to the line 03 ‘Other non-taxable transactions’.
    • Formalities to be carried out in the State of taxation:
      The French company must register and apply for a VAT number in the State in which VAT is due. She will then have to make a VAT declaration accompanied by the payment of the tax. The declaration form to be completed depends on the country concerned.
Company subject to the simplified system for agriculture

Reporting terms vary depending on the state in which the sale is taxable.

Taxable sale in the State of the taxable customer (general case)

On its annual VAT return No. 3517-AGR CA12A, the French company subject to the simplified system for agriculture must indicate the HT amount of the supply (or of the cumulative VAT of intra-Community supplies sold during the year) on the line 02 (‘Other non-taxable transactions’).

A VAT return must be submitted for each period in which the company sold services within the EU.

More information about this formality is available on the “ Declare and pay VAT »

Non-taxable sale in the State of the taxable customer (special cases)

In certain specific cases, VAT is taxable in a State which is not that of the taxable professional customer.

This may include the following services:

  • Short-term rental of a means of transport with availability in France
  • Provision of services related to an immovable
  • Provision of services by a travel agency
  • Access to events (ticketing)
  • Passenger Transportation
  • Sales to consume on site

In these particular cases, the reporting formalities vary according to the State of taxation of the sale:

  • If the sale is taxable in France:
    The French company must indicate in its declaration No. 3517-AGR CA12A, the VAT basis and amount all the services concerned and sold during the reference year. These operations must be shown on the lines 04, 5A, 5C or 09, and be grouped according to their respective rates.
  • If the sale is taxable in another Member State (i.e. not in the country of the customer or the seller):
    • Formalities to be carried out in France:
      In his statement No. 3517-AGR CA12A, the French company shall indicate the HT amount of all the services concerned and sold during the reference year to the line 02 ‘Other non-taxable transactions’.
    • Formalities to be carried out in the State of taxation:
      The French company must register and apply for a VAT number in the State in which VAT is due. She will then have to make a VAT declaration accompanied by the payment of the tax. The declaration form to be completed depends on the country concerned.

Non-taxable business customer or individual customer

The reporting arrangements shall be determined on the basis of two criteria:

  • Tax regime for VAT of the French service provider (the seller)
  • VAT tax status (this criterion may vary depending on the nature or characteristics of the service).
Company subject to the normal real regime

Reporting terms vary depending on the state in which the sale is taxable.

Taxable sale in the State of the seller (general case)

On its monthly or quarterly VAT return No. 3310-CA3, the French company subject to the normal real speed shall indicate:

  • Base HT: titleContent services sold : row A1 (‘Sales, services’)
  • VAT basis and amount : all services sold must be mentioned on the corresponding line (lines 08, 09, 9B or 11 depending on the VAT rate applicable to them)

A VAT return must be submitted for each period (monthly or quarterly as appropriate) during which the company sold services within the EU.

More information about this formality is available on the “ Declare and pay VAT »

Taxable sale in a State other than that of the seller (special cases)

In certain specific cases, the supply to a non-taxable customer is taxable in a Member State which is not that of the seller.

This may include the following services:

  • Short-term rental of a means of transport with availability in France
  • Provision of services related to an immovable
  • Provision of services by a travel agency
  • Access to events (ticketing)
  • Passenger Transportation
  • Sales to consume on site

Thus, where a French company has sold a supply of services falling within a particular case to a European non-taxable customer, it must comply with the following reporting formalities:

Formalities to be carried out in France

The French company must indicate in its declaration No. 3310-CA3 the HT amount of all the services concerned and sold during the reference month (or quarter) to the line E2 ‘Other non-taxable transactions’.

Formalities to be carried out in the State of taxation

The company must declare the transaction in the Member State in which the tax is due. She then has the following choice:

  • Either of register and apply for a VAT number in the State in which VAT is due. She will then have to make a VAT declaration accompanied by the payment of the tax.
  • Either to declare the sale and to pay the tax on the VAT one-stop shop. This window thus makes it possible to access simplified formalities.
Company subject to the simplified real regime

Reporting terms vary depending on the state in which the sale is taxable.

Taxable sale in the State of the seller (general case)

On its annual VAT return No. 3517-CA12, the French company subject to the simplified real regime shall indicate the HT basis and amount intra-Community services sold during the year on the 5A, 06, 6C or 09 according to the VAT rate to which they are subject.

A VAT return must be submitted for each year in which the company sold services within the EU.

More information about this formality is available on the “ Declare and pay VAT »

Taxable sale in a State other than that of the seller (special cases)

In certain specific cases, the supply to a non-taxable customer is taxable in a Member State which is not that of the seller.

This may include the following services:

  • Short-term rental of a means of transport with availability in France
  • Provision of services related to an immovable
  • Provision of services by a travel agency
  • Access to events (ticketing)
  • Passenger Transportation
  • Sales to consume on site

Thus, where a French company has sold a supply of services falling within a particular case to a non-taxable european customer, it must comply with the following reporting formalities:

Formalities to be carried out in France

The French company must indicate in its VAT return No. 3517-CA12 the HT amount of all the services concerned and sold during the reference year to the line 03 ‘Other non-taxable transactions’.

Formalities to be carried out in the State of taxation

The company must declare the transaction in the Member State in which the tax is due. She then has the following choice:

  • Either of register and apply for a VAT number in the State in which VAT is due. She will then have to make a VAT declaration accompanied by the payment of the tax.
  • Either to declare the sale and to pay the tax on the VAT one-stop shop. This window thus makes it possible to access simplified formalities.
Company subject to the simplified system for agriculture

Reporting terms vary depending on the state in which the sale is taxable.

Taxable sale in the State of the seller (general case)

On its annual VAT return No. 3517-AGR CA12A, the French company subject to the simplified system for agriculture shall indicate the HT basis and amount intra-Community services sold during the year on the 04, 5A, 5C or 09 according to the VAT rate to which they are subject.

A VAT return must be submitted for each year in which the company sold services within the EU.

More information about this formality is available on the “ Declare and pay VAT »

Taxable sale in a State other than that of the seller (special cases)

In certain specific cases, the benefit to a non-taxable customer is taxable in a Member State other than that of the seller.

This may include the following services:

  • Short-term rental of a means of transport with availability in France
  • Provision of services related to an immovable
  • Provision of services by a travel agency
  • Access to events (ticketing)
  • Passenger Transportation
  • Sales to consume on site

If a French company sold to a non-taxable customer In the case of a supply of services corresponding to one of these particular cases, it must carry out the following reporting formalities:

Formalities to be carried out in France

The French company must indicate in its VAT return No. 3517-AGR CA12A the HT amount of all the services concerned and sold during the reference year to the line 02 ‘Other non-taxable transactions’.

Formalities to be carried out in the State of taxation

The company must declare the transaction in the Member State in which the tax is due. She then has the following choice:

  • Either of register and apply for a VAT number in the State in which VAT is due. She will then have to make a VAT declaration accompanied by the payment of the tax.
  • Either to declare the sale and to pay the tax on the VAT one-stop shop. This window thus makes it possible to access simplified formalities.
How do I submit my VAT returns?

Declarations shall be completed and transmitted in a dematerialized (paper forms can no longer be sent):

  • Either by a manual online entry forms (EFI mode). The company completes them itself, by connecting to its professional space impots.gouv.fr :

Online tax account for professionals (EFI mode)

  • Either by going through a software special exchange (EDI mode). In this case, the company or more generally its representative (for example an accountant) enters all the information required and then sends it to the administration by teletransmission.

These two methods of remote reporting are further detailed on the page “How to send business tax returns: EDI or EFI? »

Respect customs formalities

Where a French company subject to VAT sells a supply of services within the EU, it must establish a european declaration of services if all of the following conditions are met:

  • The customer established in another EU Member State is taxable person to VAT
  • The place of performance must be located in the State in which the customer is established taxable person
  • The customer shall not not be exempt of VAT in his country in respect of that sale

For more information, you can visit the “ Customs formalities concerning VAT on intra-Community trade in goods and services ».

Where a company in France is subject to the exemption system on the basis of VAT in France, the services it sells are exempt from VAT. She is taxable person VAT but not VAT indebted.

The consequences are many, starting with the fact thatno VAT tax return is not required, and the tax does not need to be collected or remitted to any government.

A sale of services by a company exempt from VAT is, however, accompanied by a number of rules and formalisms to be respected.

Have an intra-Community VAT number in advance

Where the company exempt from VAT sells a supply of services to a taxable customer established in another Member State of the EU, it has theobligation to have an intra-community VAT number.

In France, the tax administration does not automatically assign this number applies to companies duty-free on the basis of VAT (unlike those subject to a real VAT system). This number must therefore be requested.

The company must apply for an intra-Community VAT number online via the messaging of your business account on the website impots.gouv.fr. To do this, you must click on “Messaging”, then “Write”, then “VAT” and finally: “I request an intra-Community VAT number”.

Online tax account for professionals (EFI mode)

This number must appear on every invoice or commercial document of the company.

More information is available on the “ Intra-Community VAT number ».

Invoice and comply with the mandatory information

The French seller will issue an invoice indicating the mention next: "VAT not applicable, Article 293 B of the General Tax Code". No VAT amount should be shown on the invoice.

Please note

If the client is a reporting professional, he or she no right to deduct VAT where the seller is exempt (i.e. subject to the basic exemption scheme).

The Intra-Community VAT number It is also part of the information to be indicated on every invoice or commercial document of the company.

Respect customs formalities

Where a company in France subject to VAT exemption sells a supply of services within the EU, it must establish a european declaration of services (OF) if the following conditions are met:

  • The customer established in another EU Member State is taxable person to VAT
  • The place of supply must be in the State in which the taxable customer is established
  • The customer must not be exempt from VAT in his country for this sale

For more information, you can visit the “ Customs formalities concerning VAT on intra-Community trade in goods and services ».

Please note

Companies established in an overseas department are not obliged to establish an ESD when selling services to taxable persons established in the EU.

A company subject to exemption on the basis of VAT is exempt of VAT. She's there taxable person but without being one indebted.

FYI  

Since 1er In January 2025, any company located in an EU Member State can benefit from the VAT exemption scheme in another Member State where it is not established.

When a French company benefits from the exemption from VAT in another Member State, the sales of services which it carries out are exempt from VAT.

The consequences are many, starting with the fact thatno VAT declaration is required, and that the tax does not need to be collected or remitted to any administration.

However, this exemption is accompanied by a number of rules and formalisms to be respected.

How to benefit from the VAT exemption in another Member State

A company established in France may benefit from the exemption from VAT in another Member State from the EU in which it is not established. To do so, it must respect all of the following conditions :

  • Be established in metropolitan France
  • Engage in an activity eligible for exemption from VAT in the other Member State of exemption
  • Carry out over the years N and N−1 a CA annual less than €100,000 throughout the EU, including France
  • Achieve annual turnover in years N and N-1 below the national exemption thresholds in force in the Member State of exemption
  • Not be registered in the VAT e-commerce Single Window (OSS) under non-EU OSS or IOSS schemes. For more information you can consult the sheet concerning the VAT Single Window
  • Ask the French tax authorities for the benefit of the exemption on the basis of European VAT

FYI  

If the company benefiting from the exemption in another Member State trades in excess of the €100,000, it must notify the tax authorities within 15 working days.

It must also, within the same period, inform it of the amount of trade carried out in France and in the EU from the beginning of the calendar quarter until the day on which it was exceeded.

The application for exemption on the basis of European VAT must be made in a paperless manner. The steps in this application are as follows:

Activate the service “EU VAT Franchise”

This activation is done by logging into his professional area on impots.gouv.fr.

Where to complete the application form

The ‘Simplified procedures’ form entitled ‘Application for exemption from VAT in one or more Member States of the European Union’ may be accessed:

  • Either directly on the professional area impots.gouv.fr, section "Adhere to the franchise in European VAT base"
Who shall I contact
  • Either by logging directly on the site "Simplified procedures" (the creation of an account is necessary)
How to complete the application form

To complete this form, the company must indicate:

  • Company information (SIRET number, website, e-mail address, sector of activity...)
  • DGFIP subscriber number (the one displayed in the company's professional area)
  • Registration number at VAT Single Windowwhere applicable (membership of the VAT one-stop shop is not compulsory. On the other hand, membership of the Single Window under the non-EU or import regime prevents the benefit of the exemption on the basis of European VAT)
  • Intra-Community VAT numbers held within the European Union
  • VAT exemption number active in the EU already obtained and active
  • Data concerning the turnover in France and within the European Union. These are the amounts and the breakdown by sector of activity (sale of goods or services) and by EU Member State
  • States in which the company applies for exemption from European VAT
Response Time

The company must be given its individual identification number within 35 working days of receipt of the request.

FYI  

exemption application guide is available here:

https://www.impots.gouv.fr/je-souhaite-adherer-la-franchise-en-base-tva-europeenne

(integrate the doc in a “To know more”?)

How to bill for the provision of services

Where the trader is subject to the VAT exemption in the country in which he sells his goods, he shall not not charge VAT to a customer who is not liable for it. In other words, the bill he sends her is HT: titleContent.

Declare your turnover

A company subject to exemption from European VAT shall not no obligation to declare VAT.

However, within one month of the end of each calendar quarter, it must nevertheless provide the French tax authorities with a ‘ quarterly report ’ in respect of its CA. This report shall consist of the following information:

  • Total turnover from sales of goods or services made in France during the calendar quarter. If no sale or service has been made in France it must be indicated 0
  • Total turnover from sales of goods or services made in each Member State of the EU during the calendar quarter. If no sale of goods or services has been made to one of these States, it must be indicated 0. Sales made in a Member State where the company does not benefit from the VAT exemption must also be indicated.

FYI  

If the taxable trader does not respect this deadline of one month from the end of the calendar quarter, he must then identify himself for VAT in France and file VAT returns there.

The quarterly turnover statement can be accessed by logging into the professional area impots.gouv.fr 

Professional area impots.gouv.fr

Respect customs formalities

Where a French company subject to VAT sells a supply of services within the EU, it must establish a european declaration of services (DES) if all of the following conditions are met:

  • The customer established in another EU Member State is taxable person to VAT
  • The place of supply must be in the State in which the taxable customer is established
  • The customer must not be exempt from VAT in his country for this sale

For more information, you can visit the “ Customs formalities concerning VAT on intra-Community trade in goods and services ».

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