French VAT return form updated to include new data
French tax authorities have updated the VAT return form to include one more line (line number 5A) where distance sales of goods taxed in France as country of origin must be reported.
VAT return form adds new line for distance sales
All VAT returns are prepared and submitted electronically in France, so there are no actions required from these changes other than completing this box in case you carry out distance sales dispatched from France and subject to French VAT.
These changes are important for French distance sellers and for non-French companies with an Amazon FBA warehouse in France. These businesses should use this box for all sales taxable in France where the distance sales threshold in the destination country has not been exceeded or where the consumer is located in France.
France is raising controls and audits over the online sales industry. Last March, all Amazon users selling to French customers received a letter informing them about sales volumes and obligations to register and charge VAT in France. Penalties for non-compliance with these obligations go up to 40% of the VAT due.
You can lear more about VAT compliance for distance sellers in France on our page. Please send us an email if you want to hear more about how to mitigate risks on your online sales.