France 2025 VAT: Rules for Digital Services Sellers

France’s new VAT rules are now in force, changing how digital and virtual services are taxed by applying VAT based on where your EU customer lives — not where your business is based. This directly impacts anyone selling online services to European consumers. Learn what’s changed under the France 2025 VAT digital services rules and how hellotax can keep your business fully compliant.

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France’s 2025 VAT reform: Now in effect

Since early 2025, France has been enforcing updated VAT rules under Article 259 A of the General Tax Code, tightening the EU’s “destination principle.” This means VAT on digital or virtual services — like e-learning, streaming, or online events — must be charged based on the customer’s country of residence.

No matter where your business is located, or if your bank is in the EU, these France 2025 VAT digital services requirements already apply if you have private customers in France or anywhere else in the EU buying through France.

More information on VAT compliance for digital services here.

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What changes for B2C vs. B2B transactions

The biggest impact is on sales to private consumers (B2C):

• If you provide digital services to non-taxable persons (individuals) in the EU, you must charge VAT in their country of residence and remit it there.
• For example, a UAE-based platform selling virtual concert tickets to a French resident must now charge French VAT and declare it.

For B2B transactions, the situation stays the same:

• If your customer is a business with a valid EU VAT ID, the reverse charge mechanism continues. You don’t charge VAT; your client handles it in their local VAT return.

Ready to navigate France 2025 VAT digital services rules with ease? Trust hellotax to handle VAT rates, OSS filings, and full compliance for your EU online sales. Contact us now.

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Why this matters for online digital service providers

This is crucial if your online business includes:

• Streaming services, pay-per-view, or live events
• Webinars, online coaching, or training
• Virtual tours, concerts, or cultural experiences
• E-learning platforms or digital downloads

Even if your business is outside the EU, the France 2025 VAT digital services regime means you must comply with local VAT obligations whenever you have EU customers. Many sellers use the One Stop Shop (OSS) to simplify declarations without registering in every country.

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Staying compliant under these new rules

To avoid penalties and tax adjustments during audits, make sure you:

1. Apply the correct VAT rates automatically
   Your checkout should detect the customer’s country and apply that local VAT rate.
2. Collect proof of the customer’s location
   The EU requires at least two consistent pieces of evidence, like billing address and IP country.
3. Issue fully compliant invoices
   They must show the correct VAT charged based on the customer’s country.
4. Use the OSS for simpler reporting
   This way, you can file a single EU-wide return for all B2C sales.

If you want to check the article on the French code, check here.

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How hellotax can help digital sellers

👉 Staying on top of these complex rules is tough. That’s why hellotax is here to automate your compliance.

We handle:

✅ Applying the right VAT rates in each country
✅ Registering you under OSS for EU-wide reporting
✅ Filing your VAT returns on time
✅ Keeping you aligned with the France 2025 VAT digital services regulations and other EU rules

Book a free consultation with hellotax today and let us take the stress out of your VAT compliance, so you can focus on growing your digital sales across Europe.

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Key takeaway

France’s new rules mean that if you sell digital or virtual services to EU consumers, you must now charge VAT based on where your customer lives, not where your business is. With these requirements enforced throughout 2025, working with a partner like hellotax ensures your business stays fully compliant and penalty-free.

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