French VAT reverse charge

France uses the VAT reverse charge regularly

To help reduce the VAT compliance burden for EU companies trading in France (and all EU member countries) a VAT compliance simplification mechanism, the ‘reverse charge’, is used. This allows the recording of certain French VAT transactions to be pushed to the recipient of the goods or services. This then means the foreign supplier has no need VAT register in France.


When is the French VAT reverse charge used?

The reverse charge mechanism is applied in the following circumstances:

  • Importing and selling goods to French companies with a local VAT registration
  • The supply of services to a French VAT registered business (2010 VAT package).
  • Supply and install contracts.
  • Supply of certain types of power.
  • Other various minor goods.

What is the tax point for the French reverse charge?

The tax point (when the VAT is due) for the reverse charge is the end of the month following the month of supply. However, if the vendor raised an invoice prior to the supply, then it is that date which should be used.

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