According to the French Ministry of the Economy, VAT generates nearly 50% of France’s total tax revenue, almost twice the contribution of income tax, which accounts for less than 25%. This highlights VAT as a stable and consistent source, bringing in billions of euros annually to the national treasury. Given its importance, VAT registration in France is a key compliance requirement for foreign companies making taxable supplies or engaging in EU cross-border trade. Businesses must not only obtain a VAT number but also meet strict obligations, including timely filings, accurate reporting, and recordkeeping obligations under the French tax system.
What Is French VAT?
VAT (value-added tax) in France is known as Taxe sur la Valeur Ajoutée (TVA). This consumption tax is applied by the French government to most goods and services supplied within the country. Local as well as international businesses must charge VAT on taxable sales and remit it to the French tax authorities as part of their VAT obligations.
What are French VAT Rates?
France is one of the few EU countries that uses a four tier local VAT rate depending upon the nature of goods and services.
- The standard VAT rate is 20% which applies to most goods and services.
- The 1st reduced VAT rate is 10%, which applies to goods and services like some restaurants, hotel accommodation, household work, construction, farming and forestry and passenger transport.
- The 2nd reduced VAT tax is 5.5%, which applies to books, non-alcoholic beverages, food, gas, electricity, art, cinema and sporting event tickets, and services for the elderly.
- The super-reduced VAT rate (2.1%) applies to some medicines, periodicals, newspapers, television license fees, and admission to certain cultural events.
- French zero-rated goods and services, which include medical care, dental care, intra-community and international transport. Even though no VAT is charged, the sale of it must still be reported on your VAT return.
Who Must Register for VAT in France?
All businesses (local, EU and Non-EU) must register for TVA in France when they carry out any of the following taxable activities within the country
- Sells goods to French customers
- Stores inventory in France
- Imports goods into France from other countries
- Export goods from France to other countries
- Provides services subject to French VAT
- Selling goods with full duty and tax responsibility under DDP
What are the French VAT registration thresholds?
All resident businesses in France must register for TVA when they exceed the annual sales threshold.
- For resident businesses selling business-to-business (B2B) and business-to-customer (B2C) goods, the threshold is €85,000.
- For resident businesses selling B2B and B2C services, the threshold is €37,500, which is decreased to €25,000 in June 2025.
EU sellers may be subject to VAT registration if their cross-border B2C sales of goods and certain services exceed €10,000 per year. However, there is no VAT registration threshold for non-EU sellers. They must register for VAT immediately when they make their first taxable sale in France.
What is the French VAT Number?
French VAT number or numéro de TVA intracommunautaire is a 13-character identifier which is issued by the French tax authorities upon VAT registration. It must appear on business invoices, contracts, and all relevant documentation.
VAT Registration Number Format
The French VAT number consists of three components.
- Country code FR
- A 2 digit computer calculated key
- 9-digit siren number
For example, a typical French VAT number is formatted as: FR 99 123456789.
What are the differences between SIREN, SIRET, and VAT registration numbers?
SIREN, SIRET, and VAT numbers are all used to identify a business but they serve different purposes.
- SIREN is a 9 digit number used to identify the business as a single legal entity and must appear on key company documents.
- The SIRET is a 14-digit number made up of the SIREN plus a 5-digit NIC and identifies a specific establishment or business location.
- VAT number is used for VAT purposes.
How to Register for VAT in France: Steps with French Tax Authorities.
The typical registration process for companies includes the following steps.
- Preparing company documents and proof of business activity.
- Translating documents into French where required by authorities.
- Submitting the application to the Service des Impôts des Entreprises (SIE) in Noisy-le-Grand.
- Receiving the VAT registration certificate with French VAT number.
- Creating an account on impots.gouv.fr to manage VAT returns and payments.
How can a business from an EU member state obtain a French VAT number?
If your business is headquartered in another EU member state, you can apply for a French VAT number through the online VAT identification process portal of the INPI (French National Institute of Industrial Property). The portal will then forward your application to the Foreign Business Tax Department or SIEE (Service des Impôts des Entreprises Etrangères ) for processing.
How a Non-EU Business Can Register For VAT in France?
Non-EU companies must appoint a fiscal representative in France to register for VAT. The fiscal representative acts as an intermediary with the French tax authorities and is responsible for handling VAT registration and ongoing VAT compliance.
To obtain a French VAT number, your representative must submit a complete and well-prepared application along with an official mandate and bank guarantee. These additional requirements make the process more complex for non-EU companies and should be considered when planning.
Does an EU business need a fiscal representative in France to Register For VAT?
No, EU businesses may register directly with the French tax authorities without appointing a fiscal representative. However, in some cases, EU member state businesses appoint a local tax agent to manage VAT compliance and administrative requirements.
What is the One Stop Shop (OSS) and how can it help EU businesses with VAT in France?
The One Stop Shop (OSS) is an online system in France that makes VAT reporting easier for EU businesses selling to consumers in other EU countries. Instead of registering and filing VAT separately in every country, they can report all their European Union B2C sales in one place, once per quarter.
It applies only if your total cross-border sales in the EU exceed €10,000. However, if EU-based companies store goods in France or sell to French customers domestically, they might still need a local French VAT registration. The OSS doesn’t replace that requirement.
How long does it take to register for VAT in France?
For foreign companies, the French VAT registration process usually takes one to three months. Though it can take 3-6 months, depending on how complex the application is and how quickly the French administration responds.
Is there a fee for VAT registration in France?
There is usually no government fee for VAT registration in France. However, professional fees may apply if you appoint a fiscal representative or tax agent.
Required Documents Checklist for VAT Registration
To avoid delays in France, gather the following documents to register for VAT.
- Carefully filled EEO form (“Enregistrement des Entreprises Étrangères Opérant en France”), also known as CERFA 15928*01 (For foreign/non-resident companies only).
- Certificate of incorporation (must be dated less than 3 months before submission)
- Identification documents for each company director (A copy of the passport or national ID card)
- Company’s bylaws
- Extract from the trade register
- Proof of business activity (contracts, invoices, or agreements)
- Power of attorney if you hired a tax agent to proceed.
- a bank identity statement (RIB)
Keep in mind that the French tax authorities may request additional documents based on your business structure and the nature of your activities, especially for foreign or non-resident businesses going through the VAT registration process.
Charging VAT
Once VAT is registered, businesses must charge VAT on taxable supplies by applying the correct VAT rate (standard 20%, reduced 10%, 5.5%, or 2.1%). Businesses should verify whether reduced VAT rates or exemptions apply, as using the wrong rate can lead to penalties or additional charges.
Invoices must include the supplier's VAT numbers, the correct VAT rate, and the total VAT amount. For intra-EU B2B transactions, the customer’s VAT number must also be included.
Filing VAT Returns
All VAT-registered businesses in France (including local, foreign, and non-resident) must file periodic VAT returns using the CA3 form through the online tax portal (impots.gouv.fr).
Businesses must:
- Report output VAT collected on taxable sales
- Deduct input VAT charged on business expenses
- Pay VAT due to the French tax authorities
What are the VAT filing deadlines in France?
VAT returns are usually due by the 19th of the month after the reporting period. If your annual VAT is less than €4,000, you may be allowed to file quarterly, with returns due by the 19th after each quarter. VAT rules in France can be complex and may change. It is advisable to confirm requirements with the French tax authorities or a qualified tax advisor.
Reverse Charge, Invoicing Rules and Intra-Community Supplies
The reverse charge mechanism applies in certain B2B transactions, most importantly for cross-border supplies within the European Union. Under this mechanism, the buyer pays and reports the VAT instead of the seller.
The seller issues an invoice without VAT, and the customer declares it in their VAT return. However, VAT registration numbers, applicable VAT rates, and transaction descriptions must be mentioned on invoices. Moreover, businesses who are engaged in intra-community supplies must also submit EC Sales List and comply with reporting requirements under EU VAT rules.
What is the purpose of the VAT Information Exchange System (VIES)?
Both local and international businesses can verify VAT numbers using VIES, which is an online system provided by the European Commission to verify VAT numbers. It allows both local and international businesses to check if a VAT number is valid in any EU country before using the reverse charge mechanism or making cross-border sales. This helps businesses stay compliant with VAT rules and avoid fraud in intra-EU transactions.
VAT Refunds for Foreign Businesses in France
Foreign businesses can apply for VAT refunds on French business expenses, if they have no permanent establishment or taxable transaction in France.
- EU-based companies submit claims through the EU electronic VAT refund portal via their home country.
- Non-EU businesses must apply under the 13th Directive procedure and usually appoint a tax representative in France.
- Claims must meet minimum thresholds: €400 (EU) or €200 (non-EU) for quarterly claims, and €50 for annual claims.
All applications must be submitted by 30 June (non-EU business) and 30 September (EU business) of the following year. French tax authorities usually process claims within 4 to 10 months.
Post-Registration Compliance and Recordkeeping
VAT-registered businesses must maintain accurate VAT records, including VAT ledgers and supporting documentation. Records must generally be retained for at least six years.
Businesses must also respond promptly to requests from French tax authorities and ensure compliance with ongoing VAT obligations. Fiscal representatives may handle filings for non-EU businesses.
Penalties, Audits and Deregistration
VAT compliance in France is strictly enforced by the Direction générale des Finances publiques (DGFiP). Failure to comply with VAT obligations may result in financial penalties, interest charges, or audits by the French tax authorities.
- Late payment interest: 0.20% per month
- Late payment penalty: 5% of unpaid VAT
- 10% – late but submitted quickly
- 40% – ignored official notice
- 80% – fraud or hidden activity
- €15 per error (max €1,500 per return)
- 0.2% penalty for not filing electronically (min €60)
In cases of repeated non-compliance, businesses may face formal investigations and subsequent deregisteration. The tax administration is actively strengthening the fight against VAT fraud, particularly with the introduction of e-invoicing and e-reporting, aiming to improve compliance and increase revenue.
FAQs
What is VAT in France for foreigners?
VAT in France (TVA) is a consumption tax applied to goods/services sold within France. VAT rates in France are the same for all businesses whether foreign or local: 20% (standard), 10%, 5.5%, and 2.1% (reduced rates), depending on the type of goods or services supplied.
Do I need to register for VAT in France as a foreigner?
Yes, non-resident businesses must need to register for VAT (TAV) in France immediately upon making taxable supplies. For example selling goods or services, importing goods or holding stocks etc. There is generally no minimum turnover threshold for non-established businesses.
How to get a VAT number in France?
To get a VAT number in France, submit a registration application with supporting documents to the French tax authorities. EU businesses can apply directly, while non-EU businesses must appoint a fiscal representative to handle registration and to stay compliant with French tax authorities.
What is the VAT limit in France?
For resident businesses in France, VAT thresholds are €85,000 for goods and €37,500 for services (reduced to €25,000 from June 2025). However, no threshold applies to non-resident businesses.
How much is the Vat refund in France?
VAT refunds in France depend on eligible business expenses. There is no fixed percentage, as refunds are based on the VAT paid on costs, subject to compliance and eligibility rules.
