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February � 2016
1
Tax alert – January 1, 2016: Distance sales into France threshold decreased to 35 000 €
French inbound distance
sales regulations
Article 258 B of the French Tax
Code (hereinafter "FTC") deems
the place of delivery of goods to be
in France, and thus subject to
French VAT, where the following
cumulative conditions are satisfied:
1. The goods (other than new
means of transportation,
alcohol, alcoholic beverages,
mineral oils, and manufactured
tobacco) are sent or transported
into France from another EU
Member State by or for the
seller to a person benefiting
from a derogatory regime
("PBRD" under article 256 bis-I-
2°, FTC) or a person not subject
to VAT (e.g. an individual).
1. 2.
2. The amount of these
deliveries carried out by the
seller into France has exceeded
during the current year at the
moment of the delivery, or
during the prior year, the
inbound French distance sales
threshold (excluding VAT) as
adopted by France.
French cut-off threshold
decreased as from
January 1, 2016
Since January 1, 2016, due to a
change in the law enacted by
Article 9 of the French Finance
Law for 2016 a new threshold
applies. Formerly the cut-off
threshold at which a VAT taxable
seller needed to register for VAT
in France and charge French VAT
on distance sales inbound into
France was 100 000 € (excluding
VAT). With the newly enacted
modification, the threshold, which
when crossed triggers VAT
taxation in France, has now gone
down to 35 000 € (excluding VAT).
As a reminder, the threshold
condition does not apply when the
seller opts, in its Member State of
establishment, to deem France the
place of delivery.
Concretely, the decreased
inbound distance sales
threshold means that French
VAT may apply on your distance
sales in France and you may
have accompanying declarative
obligations while in previous
years you did not.
We are at your disposal to assist
you in VAT registering in France,
complying with declarative
obligations, and for any
additional information with
respect to your business
in France.
You may need to VAT register in France: don't delay!
If you carry out distance sales into France, as fromJanuary 1, 2016 the threshold at which you are subject to French VAT has decreased from 100 000 €excluding VAT to 35 000 €excluding VAT.
© 2016 GT Société d’Avocats. All rights reserved.
French member of Grant Thornton International Ltd.
N.B.: This memorandum is of a general nature and no decisions should be taken without further advice. GT Société d’Avocats shall not accept any legal liability relating to the consequences of any decision or any action taken as a result of the information above. You are encouraged to seek professional advice. We would be happy to discuss the application of any of these changes to your particular situation.
Contacts
Elvire Tardivon-LorizonLawyer – Tax Partner T: +33 (0)1 53 42 61 61E: [email protected]
Tax Department
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GT Société d’Avocats
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GT Société d’Avocats4, rue Léon Jost75017 – Paris FRANCE
T: +33 (0)1 53 42 61 61F: +33 (0)1 53 42 61 62E: [email protected]