RSM EU VAT Indirect Tax Update - France

Reduction in VAT “distance selling” thresholds

A change in French VAT legislation reducing the VAT “distance selling” threshold from €100,000 to €35,000 will take effect January 1 2016. As a consequence, companies who have reached distance sales in France of more than € 35,000 in 2015 (or are expected to do so in 2016) will have to register for VAT in France from 2016.

What this means

Given the increase in e-commerce activity and in particular businesses of all sizes taking opportunity of the growth of the internet to expand into international markets, those selling to private consumers on a “distance selling” basis will need to take particular notice of this change if they have customers in France, and take the necessary action to minimise compliance risks.

Alexandre Soumaille, RSM France

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