# France TVA Guide 2026 > Master France TVA in 2026. Get expert guidance on VAT registration, current rates, OSS/IOSS rules, and the new Facturation Électronique e-invoicing mandate. Source: https://taxdo.com/resources/countries/eu/france Last updated: 2026-09-23 _Registration, Rates & Compliance for Foreign and Local Businesses_ ## **France TVA at a glance** | **Standard rate** | 20% TVA (Taxe sur la Valeur Ajoutée) under the Code Général des Impôts (CGI) implementing VAT Directive 2006/112/EC. The TVA framework is widely cited as the origin of modern credit-method VAT — Maurice Lauré introduced the concept in France in 1954, and the country’s framework served as the conceptual foundation for the EU VAT Directive. | | --------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Reduced rates (three tiers)** | 10% — restaurant services, accommodation services, certain agricultural products, certain transport services, certain wood/timber products, works of art under specific conditions. 5.5% — basic foodstuffs, books, gas/electricity domestic supplies, qualifying medical equipment, certain housing services. 2.1% — super-reduced rate for reimbursable medicines (regulated essential medicines), certain press publications, licence fees for television, specific listed categories under §281 CGI | | **Specific rates** | Specific territory rates apply: 8.5% (Guadeloupe, Martinique, Réunion overseas departments — DROM); 0.9% (super-reduced for first ten DROM supplies of certain categories). Corsica operates at the standard French rates but with specific reduced rates on selected categories under the Corsican framework. Mainland France: standard 20% / 10% / 5.5% / 2.1% structure applies. | | **Zero-rated supplies** | 0% — exports of goods outside the EU, intra-Community supplies of goods to VAT-registered EU customers (VAT Directive Article 138), qualifying exported services, supplies to qualifying free zones (zones franches), certain international transport | | **Exempt supplies** | Categories under §261 CGI — most financial services (interest, insurance, asset management), residential rentals (location de logements), certain medical services, certain educational services, public postal services, religious activities | | **Tax architecture** | National TVA framework under CGI implementing EU VAT Directive 2006/112/EC. Administered by the Direction Générale des Finances Publiques (DGFiP) under the Ministère de l’Économie, des Finances et de la Souveraineté Industrielle et Numérique. Foreign business registrations handled through the Service des Impôts des Entreprises Étrangères (SIE Étrangères) at DRESG (Direction des Résidents à l’Étranger et des Services Généraux). No regional VAT-equivalent layer; specific territories (DROM, Corsica) have rate variations. | | **Domestic registration** | Mandatory at commencement of taxable activity through DGFiP — issued the SIREN (9-digit business identifier) and SIRET (14-digit establishment identifier) plus the numéro de TVA intracommunautaire (FR + 11 characters). The Franchise en base de TVA (small business VAT exemption) applies under §293 B CGI for businesses with annual turnover below EUR 85,000 (goods) / EUR 37,500 (services) (2025 thresholds — verify current amounts). | | **Foreign business registration** | Non-French EU businesses with French VAT obligations register through the SIE Étrangères at DRESG. Non-EU businesses register through DRESG with appointment of a Représentant Fiscal (tax representative) — mandatory for non-EU vendors with direct French TVA registration. | | **OSS / IOSS framework** | France participates as Member State of Identification (MSI) for both Union OSS (for French-resident businesses making cross-border B2C supplies to other EU member states) and Non-Union OSS (for non-EU businesses choosing France as MSI). IOSS available for low-value (≤ EUR 150) goods imports. The OSS framework is administered through impots.gouv.fr. | | **Tax authority** | Direction Générale des Finances Publiques (DGFiP) — impots.gouv.fr. Administers TVA, Impôt sur les Sociétés (IS — corporate income tax), Impôt sur le Revenu (IR — personal income tax), customs (DGDDI — Direction Générale des Douanes et Droits Indirects), and the broader federal tax framework. Foreign business matters concentrate at DRESG and SIE Étrangères. | | **Filing — monthly** | Monthly TVA return (CA3 declaration) for taxpayers with annual TVA above EUR 4,000 — submitted through DGFiP’s electronic portal (impots.gouv.fr) typically between the 15th and 24th of the month following the period (specific deadline by company SIRET last digit). | | **Filing — quarterly** | Quarterly CA3 for taxpayers with annual TVA between EUR 1,000–4,000\. Annual CA12 declaration (Régime Simplifié) for smaller taxpayers — provisional quarterly payments throughout the year, reconciled annually. | | **Electronic invoicing — Facturation Électronique** | France’s mandatory B2B e-invoicing framework phased rollout: 1 September 2026 — receipt obligation for all VAT-registered businesses, plus sending obligation for large and mid-sized enterprises (above EUR 50 million turnover or 250+ employees); 1 September 2027 — sending obligation extends to all remaining VAT-registered businesses. The framework operates through certified PDP (Plateforme de Dématérialisation Partenaire) intermediaries — businesses choose a certified PDP from the published list, or use the public portal Portail Public de Facturation (PPF). Structured format aligned with EN 16931 European e-invoicing standard. Includes the e-reporting framework for B2C and non-EN-16931 transactions. | | **ViDA implications** | France’s Facturation Électronique rollout (2026–2027) is operationally aligned with ViDA Article 218a requirements (2030 deadline). The PDP/PPF framework will adapt to ViDA Digital Reporting Requirements (DRR) from 2030, replacing the current intra-Community recapitulative statement (DEB — Déclaration d’Échanges de Biens and DES — Déclaration Européenne de Services). France is among the EU’s earlier-mover member states on e-invoicing. | | **Late-submission fine** | Specific scaled fines under the CGI and Livre des Procédures Fiscales (LPF) — typically 10% of assessed amount for late filing (40% for late filing after formal notice), plus interest. | | **Late-payment interest** | Intérêts de retard at the statutory rate per LPF — currently 0.2% per month or fraction (2.4% annualised), plus enforcement majoration. | | **Under-reporting penalty** | Penalty under CGI §1729: 40% of underpaid TVA for deliberate breach (manquement délibéré); 80% for abus de droit (abuse of law) or manœuvres frauduleuses (fraudulent manoeuvres); supplementary criminal exposure under §1741 CGI for fraude fiscale. | | **Tax evasion** | Criminal prosecution under §1741 CGI (fraude fiscale) — imprisonment exposure up to 7 years and fines up to EUR 3 million for material amounts; aggravated cases up to 10 years and EUR 6.5 million. | | **Records retention** | 10 years from the date of the relevant tax filing under §L102 B LPF and §L13 LPF — 6 years for accounting documents under commercial code, but the longer 10-year retention under fiscal framework prevails for tax matters. | | **Currency** | Euro (EUR). France is a founding Eurozone member. | | **Statute** | Code Général des Impôts (CGI) — TVA framework implementing VAT Directive 2006/112/EC. Livre des Procédures Fiscales (LPF) — procedural framework, penalties, fraude fiscale. Annual Loi de Finances — periodic amendments. Facturation Électronique framework under successive ordinances and decrees implementing Loi de Finances 2020 Article 153 (e-invoicing mandate). DGFiP Bulletin Officiel des Finances Publiques (BOFiP) and administrative guidance. | ## **Do I need to comply? — 60-second check** You’re operating a multinational pharmaceutical, technology, financial services, or consumer business looking at France — the EU’s second-largest economy by GDP, the world’s birthplace of modern credit-method VAT (Maurice Lauré, 1954), and home to the most developed French-language operating environment in the EU. The mandatory Facturation Électronique B2B e-invoicing framework begins phased rollout 1 September 2026 — receipt obligation for all VAT-registered businesses, sending obligation for large and mid-sized enterprises, with universal sending obligation from 1 September 2027\. The PDP (Plateforme de Dématérialisation Partenaire) certified intermediary framework is operationally distinctive and requires advance integration. Foreign businesses entering France today need to operate within the EU shared framework while preparing for the imminent French e-invoicing mandate. Four questions, in order: - French-resident business above the Franchise en base de TVA threshold (EUR 85,000 goods / EUR 37,500 services)? Mandatory TVA registration through DGFiP. Local French Business track. - Non-French EU business making B2C cross-border supplies to French consumers? Either register through Union OSS (preferred — single registration in your home member state) or register directly in France if you have a fixed establishment. Foreign EU Vendor track. - Non-EU business making B2C supplies of services or goods to French consumers? Register through Non-Union OSS (with France as Member State of Identification or another EU MSI) for services; through IOSS for low-value goods imports (≤ EUR 150); through direct French registration with Représentant Fiscal for higher-value goods or specific scenarios. Non-EU Vendor track. - Foreign business with French fixed establishment, or French B2B supplies subject to specific provisions? Direct French TVA registration through DRESG/SIE Étrangères with Représentant Fiscal where applicable. Foreign Establishment / B2B track. Two contextual points. First: France introduced the modern credit-method VAT in 1954, and the country’s framework has materially influenced the EU VAT Directive. France’s tradition of complex regulatory frameworks and multi-tier reduced rate structure (20% / 10% / 5.5% / 2.1%) creates classification complexity that doesn’t exist in single-rate systems. The pharmaceutical sector specifically operates under the 2.1% super-reduced rate for reimbursable medicines — operationally significant for pharma supply chains. Second: France’s mandatory B2B e-invoicing framework is among the EU’s most operationally complex — the PDP certified intermediary model requires businesses to select a certified PDP from the published list (or use the public portal PPF), align invoice flows with structured EN 16931 format, and integrate e-reporting for B2C and non-EN-16931 transactions. The framework was originally scheduled for July 2024 but was deferred to phased rollout September 2026–September 2027\. Foreign businesses must plan e-invoicing integration well ahead of go-live. ### **Quick-jump to your persona** - Foreign EU SaaS / Digital Services Vendor into France - Non-EU Vendor (SaaS / Services / Low-value Goods) into France - Foreign E-commerce Seller (higher-value goods / B2B) into France - Local French Business ## **Foreign EU SaaS / Digital Services Vendor into France** Operating an EU-headquartered SaaS or digital services business (Ireland-domiciled, Netherlands-domiciled, Germany-domiciled, etc.) selling to French consumers and businesses? The Union OSS framework restructures your B2C compliance entirely — register for OSS through your home member state (MSI), file one quarterly return covering all EU member states including France, single payment to MSI. B2B supplies to French VAT-registered customers operate under VAT Directive Article 196 reverse-charge with the French customer self-assessing TVA through their monthly CA3. ### **Are your French sales actually in France’s TVA base?** Place of supply for B2C electronic services follows the consumer’s location under VAT Directive Article 58\. Indicators include billing address in France, payment instrument issued by a French institution, IP address resolving to France, and other commercially relevant location data — the EU-harmonised indicators applied across all 27 member states. Take Mumbai Pharmaceuticals Pvt Ltd, an India-headquartered specialty pharmaceutical company with USD 240 million revenue globally. Mumbai Pharmaceuticals combines specialty biopharmaceuticals trading with a B2B platform combining clinical-supply-chain management software, regulatory-affairs analytics, and pharmaceutical contract-research coordination for European pharmaceutical operators. France is one of Europe’s largest pharmaceutical markets — Sanofi, Servier, Pierre Fabre, Boiron, and major contract-research organisations are concentrated in Paris, Lyon, Toulouse, and Strasbourg pharmaceutical clusters. Annual French revenue reached EUR 2.1 million in 2025, concentrated among Paris-area Big Pharma operators, Lyon Biotech Cluster (Lyonbiopôle), Toulouse-Oncopole-area research operators, and pharma CRO customers. As a non-EU vendor, Mumbai Pharmaceuticals operates differently from EU-vendor profile: B2C clinician subscriptions to French recipients (smaller portion) route through Non-Union OSS with Mumbai Pharmaceuticals registered through Ireland as Member State of Identification. B2B supplies to French VAT-registered pharmaceutical operators (predominant) operate under VAT Directive Article 196 reverse-charge with the French customer self-assessing TVA through monthly CA3\. The 2.1% super-reduced rate is relevant for any direct supplies of reimbursable medicines — though Mumbai Pharmaceuticals’ software and services don’t qualify. ### **When the DGFiP clock starts running** Four operational triggers under the EU framework as applied in France. The OSS B2C trigger applies when Union OSS-registered (for EU vendors) or Non-Union OSS-registered (for non-EU vendors) cross-border supplies to French consumers exceed the EUR 10,000 EU-wide micro-business B2C threshold. Below the threshold, EU vendors may continue applying their home member state TVA to cross-border B2C supplies; above it, the OSS framework applies with destination-based TVA. The B2B reverse-charge trigger applies under VAT Directive Article 196 for cross-border B2B services to French VAT-registered customers — the French customer self-assesses TVA through CA3. The Facturation Électronique trigger applies progressively from September 2026 — even foreign vendors with French TVA registration will need to align with the PDP framework for B2B supplies to French recipients. The fixed establishment trigger applies when foreign business creates a French établissement stable — direct French TVA registration required through DRESG/SIE Étrangères. ### **OSS framework operational mechanics** Union OSS (for EU-resident vendors): Register through home member state (MSI), receive OSS identification number, file single quarterly OSS return reporting all cross-border B2C supplies to other EU member states (including France), pay consolidated VAT to MSI, the MSI distributes amounts to destination member states based on declared destination amounts. Non-Union OSS (for non-EU vendors): Register through one EU MSI (France is an option, alongside Ireland, Netherlands, Germany, others). Single quarterly OSS return. France’s OSS administration through impots.gouv.fr is operationally well-developed. ### **Getting registered — OSS vs direct registration** For cross-border B2C supplies covered by OSS: register through MSI; no separate French TVA registration required. For supplies outside OSS scope (B2B reverse-charge with French establishment, certain scenarios): direct French TVA registration through DRESG/SIE Étrangères. Operational steps for direct registration: - Apply for French SIREN/SIRET and numéro de TVA intracommunautaire (FR + 11 characters) through DRESG/SIE Étrangères. - For non-EU vendors: appoint a Représentant Fiscal (tax representative) — mandatory; jointly and severally liable for French TVA obligations. - Configure billing platform for French rates — 20% standard, 10%/5.5%/2.1% reduced, 0% on intra-Community/exports. - Establish VIES validation process for French B2B customer TVA number. - Plan Facturation Électronique integration — select certified PDP or use Portail Public de Facturation (PPF); align with EN 16931 structured format. - Establish process for Déclaration d’Échanges de Biens (DEB) for intra-Community goods and Déclaration Européenne de Services (DES) for cross-border services. ### **What you charge, and on what** 20% standard French TVA on B2C supplies of digital services to French consumers (OSS-routed where applicable). Reduced rates: 10% on accommodation/restaurant services, 5.5% on basic foodstuffs/books/qualifying medical equipment, 2.1% on reimbursable medicines (regulated framework) — note that most SaaS supplies attract the 20% standard. 0% on B2B reverse-charge supplies (French customer self-assesses under VAT Directive Article 196). Pricing models must reflect the OSS routing of VAT to France at the destination rate. ### **VIES validation framework** Before treating any cross-border B2B supply as reverse-charge to a French VAT-registered customer, validate the French TVA number through VIES (VAT Information Exchange System). Documentation discipline: capture VIES validation timestamp and customer TVA number at time of supply. VIES validation evidence is essential reverse-charge audit defence. France’s VIES data is operationally well-maintained but supplier-side verification is required. ### **Facturation Électronique — PDP/PPF framework** From 1 September 2026, all French VAT-registered businesses must be able to receive structured e-invoices through the Facturation Électronique framework. Operational mechanics: select a certified PDP (Plateforme de Dématérialisation Partenaire) from the DGFiP published list, OR use the Portail Public de Facturation (PPF) public portal. The PDP/PPF intermediary handles e-invoice transmission between supplier and customer with concurrent reporting to DGFiP. EN 16931 structured format applies. From 1 September 2027, all VAT-registered businesses also have sending obligations. Foreign vendors with French TVA registration must plan PDP integration well ahead of go-live. ### **What a French tax invoice must say** French invoice content requirements under §242 nonies A Annexe II CGI (implementing VAT Directive Article 226): supplier name and full address; supplier numéro de TVA intracommunautaire; recipient name and address (and recipient TVA number for B2B reverse-charge); sequential invoice number; invoice date; supply date; description; quantity; net amount; TVA rate and amount; gross amount. For B2B reverse-charge: reference to VAT Directive Article 196 (intra-EU services) on the invoice. Mention ‘Autoliquidation’ for reverse-charge supplies. For Facturation Électronique (from September 2026): EN 16931 structured format through PDP/PPF. ### **Submitting and paying through impots.gouv.fr** Monthly CA3 (annual TVA > EUR 4,000) or quarterly (EUR 1,000–4,000) through impots.gouv.fr electronic portal by 15th–24th of the month following the period (specific deadline by SIRET last digit). Annual reconciliation through CA12 for Régime Simplifié taxpayers. OSS returns separately through MSI’s OSS portal (quarterly). DEB (intra-Community goods) and DES (cross-border services) recapitulative declarations monthly through impots.gouv.fr. ### **What this actually costs** - French tax representative (Représentant Fiscal): EUR 6,000–22,000 per year (mandatory for non-EU vendors). - Monthly/quarterly CA3 preparation: EUR 1,000–3,500 per submission. - PDP integration and EN 16931 setup: EUR 6,000–22,000 initial. - OSS registration setup (if France as MSI): EUR 3,000–9,000. - Annual reasonableness review by Expert-Comptable: EUR 5,500–18,000. ### **What we see foreign vendors get wrong** Three patterns recur. The first: defaulting to direct French TVA registration when OSS would handle the supply more efficiently. OSS dramatically reduces compliance overhead for cross-border B2C — but operates only on B2C, not B2B. The second: under-planning for Facturation Électronique go-live — September 2026 receipt obligation requires advance PDP selection and integration; September 2027 universal sending obligation extends to all VAT-registered businesses. The third: under-investing in Représentant Fiscal selection — joint and several liability creates real exposure for the representative; engagement structure, scope, and termination terms matter. | **Selling into France? TaxDo handles the OSS-plus-Facturation-Électronique framework.** _France operates within the EU shared framework but with distinctive overlays — Facturation Électronique mandatory rollout September 2026–September 2027, the PDP certified intermediary model, the multi-tier reduced rate structure (20%/10%/5.5%/2.1%), and Représentant Fiscal requirements for non-EU vendors. Combined with OSS structuring decisions, the analytical work is non-trivial._ TaxDo’s France compliance pod handles the full lifecycle: OSS vs direct-registration analysis, Représentant Fiscal coordination, PDP/PPF integration support, EN 16931 alignment, VIES discipline, DEB/DES filings, and CA3 submission — staffed by Experts-Comptables with active DGFiP engagements. Free 30-minute France TVA scoping callIndicative quote within 48 hoursCoverage includes France + all 27 EU member states + 80+ jurisdictions globallySingle English-language SOW; one invoice; one project manager | | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ## **Non-EU Vendor into France — SaaS, Services, Low-value Goods** Operating a non-EU business making supplies to French consumers? Your structural options under the EU framework are Non-Union OSS, IOSS, or direct French TVA registration. Most non-EU SaaS vendors selling B2C into the EU register through Non-Union OSS with one MSI (Ireland, Netherlands, Luxembourg, and France are common choices — each has different operational characteristics). ### **Non-Union OSS — France as MSI consideration** Non-Union OSS allows non-EU businesses to register through one EU MSI for B2C supplies of services to EU consumers. France as MSI considerations: well-developed administrative infrastructure through DRESG; French-language preference for tax communications; mature electronic filing through impots.gouv.fr; substantial French-language Expert-Comptable advisor ecosystem. Ireland (English-language, mature SaaS ecosystem) and Netherlands (English-language, business-friendly) are common alternatives. The MSI selection affects ongoing operational language, audit profile, and advisor ecosystem fit. ### **IOSS — for low-value goods imports into France** IOSS (Import One-Stop-Shop) for distance sales of low-value (≤ EUR 150 intrinsic value) goods imported from outside the EU to French consumers. Register through MSI; receive IOSS identification number; collect VAT at point of sale at French destination rate (typically 20%, applicable reduced rates for specific categories); monthly IOSS return; goods enter EU customs (often at French airports CDG/Orly or northern European hubs depending on routing) with IOSS-IdNr referenced — faster customs clearance, no VAT at import. ### **Direct French registration — when required** Direct French TVA registration through DRESG/SIE Étrangères is required for: non-EU vendors with French établissement stable; B2B supplies above OSS scope; goods imports above EUR 150 outside IOSS; certain other scenarios. Non-EU vendors with direct French registration must appoint a Représentant Fiscal — mandatory under §289 A CGI. ### **Représentant Fiscal framework** Non-EU vendors with direct French TVA registration must appoint a Représentant Fiscal (tax representative) — a French-resident professional or firm with joint and several liability for French TVA obligations under §289 A CGI. The Représentant Fiscal must be approved by DGFiP and meet specific credentialing requirements. Operationally significant — engagement structure, scope of liability, security/guarantee arrangements, and termination terms all matter. The Représentant Fiscal is on the hook for the foreign business’s French TVA obligations, so engagement pricing reflects the liability exposure. ### **What this actually costs** - Non-Union OSS registration (France as MSI): EUR 3,000–9,000 initial; quarterly return EUR 1,000–3,000. - IOSS registration (France as MSI): EUR 3,000–9,000 initial; monthly return EUR 800–2,500. - Direct French TVA registration (where required): EUR 5,500–17,000 initial. - Représentant Fiscal retainer (mandatory for non-EU vendors with direct registration): EUR 8,000–30,000 per year. - PDP integration for Facturation Électronique: EUR 6,000–22,000 initial. - Annual reasonableness review: EUR 5,500–18,000. ### **What we see non-EU vendors get wrong** Three patterns recur. The first: defaulting to direct French TVA registration when Non-Union OSS or IOSS would cover the supplies more efficiently. The second: selecting MSI without considering operational fit — Ireland, Netherlands, France, Luxembourg have different operational characteristics; French-as-MSI works best for French-comfortable operators. The third: under-budgeting for Représentant Fiscal liability — joint and several liability creates real exposure that is reflected in pricing and engagement terms. ## **Foreign E-commerce Seller — Higher-value Goods / B2B into France** Shipping physical goods into France above the IOSS EUR 150 threshold, or supplying B2B physical goods to French VAT-registered customers? You’re operating outside the OSS frameworks. Import VAT (TVA à l’importation) at 20% applies at French customs alongside Customs Duty (under EU CET) and applicable surcharges. The structural choice between direct customs clearance and registered importer of record materially affects landed economics. ### **Are you actually ‘selling into France’?** Three structural models exist for foreign higher-value or B2B goods supplies into France. First: classic cross-border drop-ship — French buyer is importer of record, 20% import TVA applies at French customs on customs value + Customs Duty + applicable surcharges. Second: local stock model — foreign vendor registers for French TVA, becomes importer of record, charges 20% TVA on local sales, recovers import TVA as input credit. Third: marketplace-mediated — Amazon France, Cdiscount, FNAC platforms operate under platform-tax frameworks; verify with the marketplace’s commercial team. For intra-Community supplies from EU origin, Article 138 zero-rating applies. ### **Where TVA actually bites — TVA à l’importation** Import TVA at the border is the primary entry point for non-EU origin goods. The customs value (CIF basis), plus Customs Duty at the applicable EU Combined Nomenclature tariff line, plus applicable surcharges, forms the base for the 20% import TVA. Importantly: from 1 January 2022 France introduced ‘autoliquidation’ of import VAT — registered French TVA taxpayers self-assess import VAT through CA3 instead of paying at customs, materially improving cash-flow vs paying at the border. ### **Customs valuation and DGDDI** Direction Générale des Douanes et Droits Indirects (DGDDI) applies EU customs valuation rules (Union Customs Code — UCC). France participates in the EU customs union. Le Havre, Marseille-Fos, Dunkerque are France’s principal commercial ports; CDG (Paris Charles de Gaulle) is the principal air-cargo gateway. Origin certificates under EU trade agreements (EU-Korea, EU-Japan, EU-Canada CETA, EU-Vietnam, EU-UK TCA, and many others) reduce Customs Duty on qualifying flows. ### **Intra-Community supplies — Article 138 framework** EU-to-France B2B goods supplies operate under intra-Community supply mechanics (VAT Directive Article 138). EU supplier zero-rates the supply; French VAT-registered customer self-assesses 20% TVA on acquisition under §256 bis CGI and recovers it as input TVA (creating typically VAT-neutral transaction). VIES validation of French TVA number at time of supply is essential evidence. DEB (Déclaration d’Échanges de Biens) recapitulative reporting required monthly through impots.gouv.fr. ### **Reverse-charge for cross-border B2B services** Cross-border B2B services to French VAT-registered customers operate under VAT Directive Article 196 reverse-charge — French customer self-assesses TVA through CA3\. France applies the standard EU framework without expanded national reverse-charge categories (contrast with Germany’s §13b expanded framework). DES (Déclaration Européenne de Services) recapitulative reporting required monthly. ### **What this actually costs** - Customs broker (déclarant en douane) per shipment: EUR 250–900. - Customs duty: variable by EU Combined Nomenclature tariff line; preferential rates under EU FTA network. - TVA à l’importation: 20% on customs value + Customs Duty (with autoliquidation for registered taxpayers). - French TVA registration setup (for local stock model): EUR 5,500–17,000. - Représentant Fiscal: EUR 8,000–30,000 per year (mandatory for non-EU vendors). - Monthly CA3, DEB, DES filings: EUR 2,000–6,500 per month. ### **What we see foreign e-commerce sellers get wrong** Three patterns recur. The first: missing the autoliquidation framework for import VAT (since January 2022) — registered French taxpayers can self-assess import VAT through CA3 instead of paying at customs, materially improving cash flow. The second: misapplying Article 138 intra-Community supply mechanics — VIES validation, customer TVA number capture, and DEB recapitulative statement are all required for zero-rating audit defence. The third: under-investing in DEB and DES recapitulative reporting — French recapitulative reporting is operationally precise and DGFiP cross-checks against VIES; reporting gaps trigger audits. ## **Local French Business** Operating a French-resident business above the Franchise en base de TVA threshold (EUR 85,000 goods / EUR 37,500 services)? Mandatory TVA registration through DGFiP. For most commercial-scale operations the Régime Réel applies, with monthly or quarterly CA3 declarations through impots.gouv.fr and the mandatory Facturation Électronique framework (receipt obligation from September 2026; universal sending obligation from September 2027). ### **Choosing the right regime** Régime Réel Normal (monthly CA3) for taxpayers with annual TVA > EUR 4,000; Régime Réel Simplifié (annual CA12 with quarterly provisional payments) for TVA EUR 1,000–4,000; Franchise en base de TVA for businesses below threshold (no TVA collection, no input recovery). The choice affects compliance overhead materially. ### **Monthly compliance rhythm** Régime Réel Normal taxpayers submit monthly CA3 through impots.gouv.fr between the 15th–24th of the month following the period (specific deadline by SIRET last digit). Late filing triggers 10% penalty (40% after formal notice) plus 0.2% per month intérêts de retard. ### **Facturation Électronique — what’s coming** 1 September 2026: universal receipt obligation; large enterprises (above EUR 50 million turnover or 250+ employees) also gain sending obligation. 1 September 2027: universal sending obligation extends to all remaining VAT-registered businesses. Operational mechanics: select certified PDP from DGFiP published list, OR use Portail Public de Facturation (PPF). EN 16931 structured format. E-reporting framework for B2C and non-EN-16931 transactions runs in parallel. ### **ViDA — what’s coming** ViDA adopted March 2025 with phased implementation 2028–2035\. Key milestones for French businesses: 1 January 2028 — Platform economy reforms (deemed supplier rules); 1 July 2028 — Single VAT registration expansion; 1 July 2030 — Mandatory cross-border B2B e-invoicing across EU + Digital Reporting Requirements (DRR) replacing DEB/DES recapitulative statements; 2035 — Full alignment of national e-invoicing. France’s Facturation Électronique rollout positions it well for ViDA compliance. ### **Annual Impôt sur les Sociétés (IS)** Corporate income tax — 25% standard rate (reduced from 28% over the 2018–2022 progressive reduction). Small companies (turnover < EUR 10 million, with conditions) benefit from 15% rate on first EUR 42,500 of profit. Annual return filed through impots.gouv.fr by SET-published deadline (3-4 months after fiscal year-end depending on profile). ### **What we see French businesses get wrong** Three patterns recur. The first: missing the Franchise en base de TVA threshold transition — turnover crossings mid-year affect registration obligation timing. The second: under-investing in Facturation Électronique advance planning — September 2026 receipt obligation requires PDP selection and integration well ahead of go-live. The third: misclassifying reduced rate eligibility — the 20%/10%/5.5%/2.1% multi-tier framework requires precise classification, particularly for restaurant/accommodation (10%), books/foodstuffs (5.5%), and reimbursable medicines (2.1%). ## **Cross-track essentials** ### **Penalty exposure table** France’s penalty framework under CGI §1729 and LPF: - Late filing — 10% of assessed amount; 40% after formal notice (mise en demeure); plus minimum amount under specific conditions. - Late payment — 0.2% per month or fraction (2.4% annualised) intérêts de retard plus 5% majoration. - Material under-reporting (manquement délibéré) — 40% of underpaid TVA under §1729 CGI. - Abuse of law (abus de droit) or fraudulent manoeuvres (manœuvres frauduleuses) — 80% of underpaid TVA under §1729 CGI. - Fraude fiscale (criminal tax evasion) — criminal prosecution under §1741 CGI; imprisonment up to 7 years (10 years aggravated); fines up to EUR 3 million (EUR 6.5 million aggravated); name-and-shame publicity for serious cases. ### **Audit triggers** DGFiP deploys risk-based selection (Contrôle Fiscal framework). Common triggers: TVA credit positions persisting; intra-Community supply zero-rating without proper VIES validation evidence; DEB/DES recapitulative statement anomalies; large transactions with non-resident affiliates (prix de transfert — transfer pricing); pharmaceutical/2.1% reduced rate classification disputes; Facturation Électronique compliance gaps post-September-2026. ### **Records retention** France requires 10 years of records from the date of the relevant tax filing under §L102 B LPF. Commercial accounting documents under Code de Commerce: 6 years — but the longer 10-year fiscal retention applies for tax-relevant records. Electronic records under Facturation Électronique count as primary records. FEC (Fichier des Écritures Comptables) electronic accounting file standardised format required for digital audit. ### **Currency** Euro (EUR) is the official currency. France is a founding Eurozone member. ### **Brexit context** Post-Brexit (January 2021), the UK is no longer part of the EU VAT framework. French-UK trade operates under: customs duties (with EU-UK TCA origin preferences); import VAT at destination; separate UK VAT registration required for direct UK supplies; postponed VAT accounting available for UK imports. Northern Ireland under Windsor Framework remains in EU VAT for goods (not services). Brexit reshaped Le Havre/Calais/Dunkerque-Channel logistics operations materially. ## **Frequently Asked Questions** ### **How is France’s TVA structured within the EU framework?** France’s TVA operates under the Code Général des Impôts (CGI) implementing VAT Directive 2006/112/EC. Multi-tier rate structure: 20% standard, 10% / 5.5% / 2.1% reduced and super-reduced. Administered by DGFiP under Ministère de l’Économie et des Finances. Foreign business matters concentrate at DRESG/SIE Étrangères. 10-year retention under LPF. ### **How do the four tiers (20%/10%/5.5%/2.1%) work?** 20% — standard rate on most supplies. 10% — restaurants, accommodation, certain agricultural products, transport, wood/timber, art. 5.5% — basic foodstuffs, books, gas/electricity domestic, qualifying medical equipment, certain housing services. 2.1% — super-reduced for reimbursable medicines, certain press publications, TV licence, specific listed categories. Classification matters — getting it wrong creates exposure. ### **Does France have a foreign digital services TVA regime?** Yes — France operates the EU OSS framework. Non-EU vendors can use Non-Union OSS (with France or another EU MSI). EU vendors use Union OSS. IOSS for low-value goods imports. Direct French TVA registration for scenarios outside OSS scope. ### **What’s Facturation Électronique?** France’s mandatory B2B e-invoicing framework. Phased rollout: 1 September 2026 — receipt obligation for all VAT-registered businesses + sending obligation for large enterprises; 1 September 2027 — universal sending obligation. PDP (Plateforme de Dématérialisation Partenaire) certified intermediary model OR Portail Public de Facturation (PPF) public portal. EN 16931 structured format. E-reporting framework for B2C and non-EN-16931 transactions. ### **How does France handle ViDA?** France’s Facturation Électronique rollout (2026–2027) is well-aligned with ViDA Article 218a requirements (2030 mandate). Digital Reporting Requirements (DRR) under ViDA from 2030 will replace DEB/DES recapitulative statements with structured digital reporting. France is among EU’s earlier-mover member states on e-invoicing. ### **What’s the Représentant Fiscal framework?** Non-EU vendors with direct French TVA registration must appoint a Représentant Fiscal (tax representative) — a French-resident professional or firm with joint and several liability for French TVA obligations under §289 A CGI. Mandatory; engagement structure and pricing reflect liability exposure. ### **What’s the corporate income tax rate?** Impôt sur les Sociétés (IS) at 25% standard. Small companies (turnover < EUR 10 million with conditions) benefit from 15% rate on first EUR 42,500 of profit. Annual return through impots.gouv.fr by DGFiP-published deadline. ### **How does autoliquidation of import VAT work?** From 1 January 2022, French TVA-registered taxpayers can self-assess import VAT through CA3 (the autoliquidation framework) instead of paying at customs. This materially improves cash flow vs traditional pay-at-customs-recover-later approach. Available to registered taxpayers automatically. ### **How does Brexit affect French TVA?** Post-Brexit, the UK is no longer in the EU VAT framework. French-UK trade requires separate UK VAT registration for direct UK supplies. EU-UK TCA provides customs duty preferences for qualifying-origin goods. Le Havre/Calais/Dunkerque-Channel operations were materially restructured. ### **Where do I check current DGFiP guidance?** impots.gouv.fr — DGFiP official portal. BOFiP (Bulletin Officiel des Finances Publiques) at bofip.impots.gouv.fr — official administrative guidance. Engage an Expert-Comptable for material decisions. ## **Recent and upcoming changes** France’s TVA framework has been actively evolving. The structural themes have been: Facturation Électronique mandate (originally July 2024, deferred to phased rollout September 2026–September 2027); autoliquidation of import VAT (effective January 2022); alignment with ViDA framework (adopted March 2025); ongoing EU small-business cross-border framework refinements_(For practical steps on looking up partners, read our guide on **[verifying clients in the French e-invoicing directory (in French)](https://taxdo.com/resources/blog/post/annuaire-facturation-electronique-verifier-client)**.)_. ### **2026–2027 — Facturation Électronique phased rollout** 1 September 2026: universal receipt obligation; large enterprises (>EUR 50 million turnover or 250+ employees) sending obligation. 1 September 2027: universal sending obligation. EN 16931 structured format via PDP/PPF. ### **2028 — ViDA platform economy reforms** 1 January 2028: ViDA platform economy reforms — deemed supplier rules for short-term accommodation and passenger transport platforms; mandatory data sharing. ### **2030 — ViDA cross-border B2B e-invoicing** 1 July 2030: mandatory cross-border B2B e-invoicing across all EU member states + Digital Reporting Requirements (DRR) replacing DEB/DES recapitulative statements. ### **2022 — Autoliquidation of import VAT** 1 January 2022: registered French taxpayers can self-assess import VAT through CA3 instead of paying at customs. Material cash-flow improvement for importers. ## **Primary sources & further reading** - [Direction Générale des Finances Publiques (DGFiP)](https://www.impots.gouv.fr/) — primary tax authority portal; electronic filing, OSS, DEB, DES - [Bulletin Officiel des Finances Publiques (BOFiP)](https://bofip.impots.gouv.fr/) — official administrative guidance - [Direction Générale des Douanes et Droits Indirects (DGDDI)](https://www.douane.gouv.fr/) — French customs administration - [Portail Public de Facturation (PPF)](https://www.impots.gouv.fr/) — public e-invoicing portal - [Code Général des Impôts (CGI) — TVA framework implementing VAT Directive 2006/112/EC](https://www.legifrance.gouv.fr/) - [Livre des Procédures Fiscales (LPF) — procedural framework, penalties, fraude fiscale](https://www.legifrance.gouv.fr/) - [§289 A CGI — Représentant Fiscal framework](https://www.legifrance.gouv.fr/) - [§1729 CGI — penalty framework](https://www.legifrance.gouv.fr/) - [§1741 CGI — fraude fiscale criminal framework](https://www.legifrance.gouv.fr/) - [VAT Directive 2006/112/EC](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02006L0112-20240101) — EU VAT framework foundation - [ViDA Directive](https://taxation-customs.ec.europa.eu/taxation/vat/vat-digital-age-vida%5Fen) — VAT in the Digital Age framework **Disclaimer** _This guide is published by TaxDo as part of the Global Tax Hub. It is general commentary on French indirect tax (TVA) at the date shown and is not legal, tax, or accounting advice for any specific transaction or business. France’s TVA framework operates under the Code Général des Impôts (CGI) implementing VAT Directive 2006/112/EC, with the multi-tier rate structure (20% / 10% / 5.5% / 2.1%), the mandatory Facturation Électronique framework phased rollout September 2026 – September 2027 (PDP/PPF certified intermediary model with EN 16931 structured format), the autoliquidation of import VAT (effective January 2022), the Représentant Fiscal requirement for non-EU vendors with direct French registration, and alignment with the ViDA framework adopted March 2025\. Statute, regulation, and DGFiP administrative guidance (BOFiP) change; Facturation Électronique rollout milestones, multi-tier rate classification, Représentant Fiscal scope, OSS/IOSS framework changes, and 10-year retention requirements should be verified against current French sources before any decision is made. Engage a French Expert-Comptable for transaction-specific analysis. TaxDo accepts no liability for action taken in reliance on this guide._ ## Frequently asked questions ### How is France's TVA structured within the EU framework? France's TVA operates under the Code Général des Impôts (CGI) implementing VAT Directive 2006/112/EC. Multi-tier rate structure: 20% standard, 10% / 5.5% / 2.1% reduced and super-reduced. Administered by DGFiP under Ministère de l'Économie et des Finances. Foreign business matters concentrate at DRESG/SIE Étrangères. 10-year retention under LPF. ### How do the four tiers (20%/10%/5.5%/2.1%) work? 20% — standard rate on most supplies. 10% — restaurants, accommodation, certain agricultural products, transport, wood/timber, art. 5.5% — basic foodstuffs, books, gas/electricity domestic, qualifying medical equipment, certain housing services. 2.1% — super-reduced for reimbursable medicines, certain press publications, TV licence, specific listed categories. Classification matters — getting it wrong creates exposure. ### Does France have a foreign digital services TVA regime? Yes — France operates the EU OSS framework. Non-EU vendors can use Non-Union OSS (with France or another EU MSI). EU vendors use Union OSS. IOSS for low-value goods imports. Direct French TVA registration for scenarios outside OSS scope. ### What's Facturation Électronique? France's mandatory B2B e-invoicing framework. Phased rollout: 1 September 2026 — receipt obligation for all VAT-registered businesses + sending obligation for large enterprises; 1 September 2027 — universal sending obligation. PDP (Plateforme de Dématérialisation Partenaire) certified intermediary model OR Portail Public de Facturation (PPF) public portal. EN 16931 structured format. E-reporting framework for B2C and non-EN-16931 transactions. ### How does France handle ViDA? France's Facturation Électronique rollout (2026–2027) is well-aligned with ViDA Article 218a requirements (2030 mandate). Digital Reporting Requirements (DRR) under ViDA from 2030 will replace DEB/DES recapitulative statements with structured digital reporting. France is among EU's earlier-mover member states on e-invoicing. ### What's the Représentant Fiscal framework? Non-EU vendors with direct French TVA registration must appoint a Représentant Fiscal (tax representative) — a French-resident professional or firm with joint and several liability for French TVA obligations under §289 A CGI. Mandatory; engagement structure and pricing reflect liability exposure. ### What's the corporate income tax rate? Impôt sur les Sociétés (IS) at 25% standard. Small companies (turnover < EUR 10 million with conditions) benefit from 15% rate on first EUR 42,500 of profit. Annual return through impots.gouv.fr by DGFiP-published deadline. ### How does autoliquidation of import VAT work? From 1 January 2022, French TVA-registered taxpayers can self-assess import VAT through CA3 (the autoliquidation framework) instead of paying at customs. This materially improves cash flow vs traditional pay-at-customs-recover-later approach. Available to registered taxpayers automatically. ### How does Brexit affect French TVA? Post-Brexit, the UK is no longer in the EU VAT framework. French-UK trade requires separate UK VAT registration for direct UK supplies. EU-UK TCA provides customs duty preferences for qualifying-origin goods. Le Havre/Calais/Dunkerque-Channel operations were materially restructured. ### Where do I check current DGFiP guidance? impots.gouv.fr — DGFiP official portal. BOFiP (Bulletin Officiel des Finances Publiques) at bofip.impots.gouv.fr — official administrative guidance. Engage an Expert-Comptable for material decisions.