VAT registration in France

Click here for our latest article on VAT registration in France

Are you an e-commerce business owner looking to expand your reach and tap into new markets? With its thriving e-commerce sector and a large consumer base, France presents a lucrative opportunity for online businesses to thrive. However, before diving into this dynamic market, it’s crucial to understand the ins and outs of VAT registration in France. In this blog post, we will explore the reasons why France is a prime destination for e-commerce ventures and shed light on the importance of VAT registration for successful operations in the country.

Who has to register for VAT in France?

Distance sellers previously had to register for VAT when they reached the country-specific threshold of 35,000 EUR. As of July 2021, however, the country-specific threshold was abolished and a new EU-wide threshold of 10,000 EUR was introduced. In addition to this threshold, French businesses must register for VAT if they supply goods or services, regardless of the frequency or independence of the supply, or whether it is the main or secondary activity of the business, and if the business needs to account for French VAT on intra-Community acquisitions of goods or on intra-Community supplies of services. Exempt businesses are not required to register, but non-French companies must register for VAT if they carry out transactions in France on which they must pay VAT and are granted a right of deduction.

Who is processing for a VAT registration in France and what information is required?

French VAT registrations are usually handled by the Service des Impôts des Entreprises (SIE). Applications are available in English, but must be filled out in French. Consult a translator if you don’t know the French language well. Alternatively, you can register with our hellotax VAT software in just a few clicks.

Additionally, the following documents need to be submitted:

• Natural person: ID card (copy)
• Juridical person: Articles of association (copy)
• Commercial register (copy)
• Proof of business activity in France (e.g., bills, contracts)
• Confirmation of bank account details. Name of the company, address and bank account number should be mentioned.
• If the application is submitted by an authorized representative, you need to add the original power of attorney (Désignation d’un mandataire)

Some of the documents must be translated into French by a sworn translator and certified by a notary. Once you have completed your registration, you will receive a French VAT number.

Where are the French VAT registrations submitted?

A VAT registration in France is typically submitted to the tax authorities via an online portal, “Guichet Entreprises” or “Business Formalities Center.” The Guichet Entreprises platform serves as a one-stop shop for administrative procedures, including VAT registration.

How long does a VAT registration in France take?

It takes around 2 to 3 months to complete the VAT registration in France.

French VAT rates: what do they look like?

The standard VAT rate in France is 20%, and it applies to goods and services. The reduced rate of 10% applies for example for certain foodstuffs or certain non-alcoholic beverages. The second reduced rate of 5.5% applies e.g. to school canteens or water supplies. There is another reduced rate of 2.1% which is for some newspapers and periodicals or the admission to some cultural events. Intra-community transport (excluding road and inland waterways) is taxed with 0%.

What numbers will I receive when the registration is processed?

After VAT registration in France, you will receive a VAT identification number (VAT ID) consisting of 13 characters. The French VAT ID is structured as follows:

• The first two characters represent the country code “FR” indicating France.
• The next two characters indicate the type of legal entity, such as a natural person or a company.
• Following that, there are nine digits that serve as a SIREN Number (Système d’Identification du Répertoire des Entreprises), the identification number assigned to the business by the French National Institute of Statistics and Economic Studies (INSEE). It serves as a primary identifier for the business in France.

Register in time to avoid problems with the French tax authorities or fines. You can make your VAT registration in France easier by using our hellotax VAT automation tool. Further, you can automate VAT payments, VAT returns and correspondence with the authorities.

When do I have to file my VAT returns in France?

All businesses registered for VAT in France start with monthly VAT returns. If the VAT liability per annum is under €4,000 quarterly returns can be filed instead.

What are the deadlines for VAT returns in France?

Monthly and quarterly VAT returns in France must be filed between the 19th and the 24th day of the following month which follows the last tax period.
Example: between February 19 to 24 for the monthly return for January or April 19 to 24 for the quarterly return of the first quarter.

What happens if I do not register on time? 

In France, failure to register for VAT on time or not complying with VAT obligations can result in penalties imposed by the tax authorities. The specific penalties may vary based on the nature and severity of the non-compliance. Here are some potential penalties that could be imposed:

1. Late Registration Penalties: If you fail to register for VAT within the required timeframe, you may face a penalty based on the duration of the delay. The penalty amount can increase the longer the registration is delayed.
2. Late Filing Penalties: If you do not submit your VAT returns or other required tax declarations within the prescribed deadlines, late filing penalties may be imposed. These penalties can be based on a percentage of the VAT amount due or a fixed amount per day of delay.
3. Inaccurate or False Information Penalties: Providing incorrect or false information in VAT filings or related documents can lead to penalties. The amount of the penalty may depend on the severity and intent of the inaccuracies or false information.
4. Failure to Pay VAT Penalties: If you do not pay the VAT due within the required timeframe, penalties can be imposed based on a percentage of the outstanding amount. The penalty may increase the longer the payment is delayed.
5. Serious Non-Compliance Penalties: In cases of significant or repeated non-compliance with VAT obligations, including deliberate tax evasion or fraud, the tax authorities may impose more severe penalties, such as fines and criminal sanctions.

It’s important to note that the specific penalties and their amounts can vary depending on the circumstances and the discretion of the tax authorities. To ensure accurate and up-to-date information on VAT penalties in France, it is advisable to consult the official French tax authority or seek professional advice.

What do I have to do, if I want to get registered or if I am not sure if I need to get registered in France?

We can support you with both. 

If you are not sure whether you need a registration in France, you can book a free consultation, where we will evaluate your situation and give you advice on how to proceed next.

If you already know that you need a VAT registration, we can support you with this as well. Please see our internal pricing and reach out to our Sales team for more information.