VAT Changes 2016:
Do you distance-sell in France? You may now be obliged to register for VAT under new legislation
Reduced distance-selling VAT registration threshold
Art. 258B of the French Tax Code has been amended, lowering the distance-selling VAT registration threshold from €100,000 to €35,000. This step has been taken so that the threshold is in line with that in place in the majority of EU countries. As of January 1st 2016, distance-selling of goods from another EU Member State to France will be subject to French VAT once the sales value exceeds €35,000, excluding VAT. Alternatively, a supplier can choose to impose French VAT on invoices within the EU from the first euro.
Stricter accounting and reporting standards
As of January 1st 2016, all VAT-registered businesses in France are required to use certified accounting software that meets inalterability, security, storage and archiving standards. There will also be stricter legislation on the use of sales-tracking software. Companies must be able to provide the tax administration with a certificate approved by a third party with the authority to conduct certification audits, or a certificate from the software developer.
Businesses are granted a transitional period of two years to make the necessary changes to their accounting systems and practices. As of January 1st 2018, penalties of €7,500 will apply, with businesses being required to present evidence of certified software to the authorities within 60 days.
How can we be of assistance?
We can register your business with the French tax authorities and file the periodical VAT declarations.
We can map your existing (foreign) accounting software to French standards and provide you with our compliant accounting service.
If you feel that you may be affected by the change for non-residents in French Social Contributions Rules but are unsure about how to proceed, please contact us via telephone +33 (0) 1 53 93 94 20 or [email protected].