French VAT Rates
Bienvenue! Welcome to your guide to navigating VAT in France.
Whether you’re a budding entrepreneur, a seasoned business owner, or just curious about the French VAT landscape – we’ve got you covered. Let’s dive in and make understanding French VAT as delightful as walking down the Champs-Élysées!
What is the VAT rate in France?
In France, the value-added tax (VAT) rates vary based on the type of product or service offered. Here are the different VAT rates in France:
Standard Rate: The standard VAT rate in France is 20%. This rate applies to most goods and services
Reduced Rates (10%): This reduced rate is applicable to goods and services such as some restaurants, construction and household work, farming and forestry, and passenger transport
Reduced Rates (5.5%): The second reduced rate applies to food, gas, electricity, art, cinema and sporting event tickets, and services for the elderly
Super-Reduced Rate (2.1%): Applies to specific items like medicine, newspapers, and magazines
VAT Registration in France
Getting your business VAT-registered in France is important if you’re operating in the country.
Let’s explore the essentials together and make sure you’re on the right track!
Mandatory Registration:
If your company produces taxable goods in France, VAT registration is a must. Foreign companies selling goods or services within France also need to complete the registration process.
French VAT Number:
Upon registration, companies receive a dedicated VAT number. In France, your VAT number is 13 characters long and starts with “FR”.
This number is unique to your business and important for any transactions or dealings with taxes – itshould be included on all invoices and tax-related documents. It’s like your business’s ID card, helping the authorities keep an eye on things and making sure everything follows the VAT rules.
Remember to comply with French VAT regulations to ensure smooth business operations!
Import VAT Reverse Charge in France
Import VAT in France underwent a big transformation on January 1, 2022.
Before this, French Customs managed import VAT, but now the French Tax Authority takes the reins. This change means businesses registered for VAT in France, including non-taxable persons with an intra-community VAT number, must use the import VAT reverse charge.
What’s the Import VAT Reverse Charge?
It’s a game-changer! Businesses now declare and pay import VAT directly in their French VAT return instead of the customs declaration. This smart move lets them deduct import VAT without the hassle of cash payments at the border.
For most, it’s a win-win situation.
Here are some key points to consider:
- Importers must share their French intra-community VAT number with customs representatives before importation.
- Non-EU companies need French VAT registration, and a fiscal representative might be required.
These changes make import VAT procedures smoother, helping businesses and boosting compliance. If you want more details, explore our Import VAT in France blog.
Current Status on all EPR Categories in France (Subject to Regulatory Updates)
| Categories | Legislation Enforcement Date |
| Packaging | 01/01/2022 |
| WEEE | 01/01/2022 |
| Batteries | 01/01/2022 |
| Furniture | 01/01/2022 |
| Printed Paper | 01/01/2022 |
| Textiles | 01/01/2022 |
| Tyres | 01/01/2022 |
| Chemicals | 01/01/2022 |
| Sports and Lesiure | 01/01/2023 |
| DIY & Gardening Articles | 01/01/2023 |
| Construction | 01/01/2023 |
| Piercing Medical Equipment | 01/01/2023 |
| Catering Packaging | 31/01/2024 |
| Chewing gum | 31/01/2024 |
| Mineral Oils | 01/01/2023 |
| Sanitary Textiles | 31/01/2024 |
| Tobacco | 01/01/2023 |
Stay VAT Compliant in France with AVASK
Keep in mind that handling VAT in France doesn’t have to be complicated. If you ever find yourself in need of a friendly guide or have questions about your VAT journey, the AVASK team is just a message away.
Frequently Asked Questions
Are there any specific VAT rules for using fulfilment centres in France?
Yes, if you store stock in a fulfilment centre in France, it triggers an immediate VAT registration requirement – regardless of your sales volume.
How often do I need to file VAT returns in France?
VAT returns in France are generally filed monthly.