France

VAT Basics

French VAT rates

France has opted for the reduced and super-reduced VAT rates on a number of items allowed by the VAT Directive. The French super-reduced rate is the lowest in the EU (source: European Commission):

* France also introduced a super-reduced rate of 2.1% on the following items: certain pharmaceutical products; certain newspapers and periodicals; TV licenses; and admission to certain cultural events."

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French VAT deductions Limits

As a general rule, French VAT can be deducted as long as it is incurred for business purposes and all formalities are met. More specifically, the following deduction rules apply:

• Input VAT on hotel accommodation of employees is not deductible. Where these costs are incurred by third parties and the business purpose test is met, 100% deduction is allowed.
• VAT on restaurant meals is deductible as long as the name of the company is stated on the invoice.
• Input VAT on conferences, fairs and exhibitions is normally 100% deductible.
• Taxi, car rental, car repair, train and bus expenses are 0% deductible. Motorway tolls are 100% deductible.
• Entertainment expenses are generally 100% deductible.
• With respect to fuel expenses, VAT on diesel is 80% deductible, but petrol is up to 10% deductible in 2020. VAT deduction allowance on petrol will increase gradually in the next years.
• Expenses on gas-fuel such as kerosene are 100% deductible
• Business gifts are not deductible if the value exceeds EUR 73.

Deducting VAT prior to the beginning of the economic activity is only allowed under certain conditions. The expenses should be connected with the expected business and, more importantly, a compliant invoice must be issued for these costs. You can find here additional information about input VAT deduction, published by the French tax authorities.

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French Statute of limitations

Input VAT should be claimed in a VAT return filed no later than the end of the second year following the year during which the deductible VAT was due.

Regarding the obligation to pay VAT, the same general rule applies. The French tax authorities con investigate VAT liabilities up to the end of third year following the year in which VAT became due. There is an extended period of 10 years in case of fraud or "hidden activity".

There is more information available (in French) on the French tax authorities' website.

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French tax point rules

The tax point is the time when VAT becomes due. VAT due should be distinguished from VAT payable. VAT is due when the tax point occurs. VAT is payable between the day after the end of the reporting period and the due date to submit and pay the VAT return.

• General rule: VAT becomes due when the goods are put at the disposal of the customer or when the service is completed. If there is a prepayment made for a provision of services, the tax point is moved to the date of this prepayment.
• Prepayments or advanced payments create a tax point on supplies of goods and services. From January 2023, VAT becomes due upon receiving the prepayment or advanced payment, also allowing taxpayers to also deduct the output VAT paid from the first installment. Find here the official information about this topic.
• Intra-Community acquisitions: Tax point occurs when the goods enter France. An invoice must be issued by the 15^th day of the following month.
• Intra-Community supplies: Tax point occurs when the goods ship from France. An invoice must be issued by the 15th day of the following month.
• Import: Tax point occurs when the goods are imported according to the relevant import documents.
• Continuous supplies of services: If periodic payments are made for the provision of services, the tax point arises at the end of the period to which the payment relates to. If there are no periodic payments and the service is rendered for more than a calendar year, the tax point occurs at the end of each calendar year.

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VAT registrations and simplications in France

When do I need a French VAT number?

As a general rule, a foreign non-established business must register for VAT in France as soon as a taxable supply is made. The following are some usual examples of taxable transactions:

• Domestic supply of goods not reverse charged: A supply of goods located in France to a French customer where the supply is not subject to reverse charge requires a VAT registration of the supplier.
• Supply of services not reverse charged: Foreign non-established businesses supplying services on which French VAT is due must register for VAT. These services are rather exceptional, as the general B2B rule would apply.
• Export: Exporting goods to a non-EU country requires a VAT number before the export is made.
• Import: Importing in France requires a VAT registration to self-assess the import VAT. This is because the postponed import VAT is mandatory in France.
• Intra-Community acquisition: Acquiring goods from another Member State where all conditions for intra-Community movements are met requires the customer to register for VAT.
• Intra-Community supply: Supplying goods another Member State is also a taxable transaction that obliges the supplier to register for VAT
• Distance sales: When applicable in case the Seller has not joined OSS. See the E-commerce manual for more information.

A voluntary registration is not possible in France for foreign non-established businesses. This is, companies cannot register if they have not made a taxable transaction.

There is no registration threshold for non-established companies in France. Any company without a permanent establishment that performs taxable transactions should register for VAT.

However, small established companies can benefit from special VAT regimes that simplify their compliance obligations – such as the franchise en base, or the simplified imposition regime (RSI). However, small established businesses subject to those special VAT regimes can voluntarily register for VAT purposes in France and start charging VAT in their sales. You can check here the official information about all VAT regimes in France.

A backdated registration is possible in France. Such backdated registration is required when a business applies for a French VAT number late.  In this case, all missed VAT returns are due, and, if applicable, all corresponding VAT payments should be made.

Input VAT incurred before the VAT registration may be deductible concerning purchases of goods or services directly related to the economic activity (not for private use). In case a foreign business is willing to deduct VAT incurred while not VAT registered, normally, a retroactive VAT registration is required. In case no taxable transactions took place during the year on which input VAT was incurred by the foreign business, such VAT shall be recovered via the EU VAT refund mechanism or 13th Directive.

A limited VAT registration for foreign companies is possible in France. This is known as Immatriculation à des fins exclusivement douanières or VAT registration for customs purposes only, and VAT returns are not due under this regime – form CA3. This applies when the VAT registration in France is required only to comply with customs obligations – use of VAT number and submission of the eventual ESL and Intrastat returns. These are the transactions that arise a limited VAT registration in France:

• Intra-Community acquisitions in France
• Deemed intra-Community supplies in France, this is, movement of own stock out of France to another EU country.

Find here the official information about VAT registration for foreign companies in France.

From January 2023 the registration application must be submitted via the new portal for company's formalities.

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Fiscal representative requirements in France

Non-EU businesses must appoint a French fiscal representative when registering for VAT purposes in France. The fiscal representative is jointly and severally liable for the tax liabilities of the company. After Brexit in 2021, UK companies are not required to appoint a fiscal representative for VAT purposes in France.

Businesses from other countries with whom France signed an agreement for mutual assistance also do not need a fiscal representative. The full list of countries who do not require a fiscal representative is published on this page from the French authorities.

EU businesses must register directly for VAT purposes. This means that the legal representative of the company signs the registration form without any local French involvement. Companies registered directly in France can appoint an agent to take care of their VAT obligations. This agent (so called "mandataire fiscal") is not jointly and severally liable for the tax liabilities of the business.

From January 2023, the authorities introduced a new requirement for the French fiscal representation. To represent a client for VAT purposes, the fiscal representative must obtain accreditation from the tax office. This accreditation is a prerequisite for all new VAT registrations.

The fiscal representation accreditation involves meeting specific criteria and complying with regulations set forth by French tax authorities. These criteria aim to promote transparency and accountability within fiscal representation arrangements and include:

1. Capacity Condition: The tax representative must demonstrate the presence of an administrative infrastructure, as well as sufficient human and material resources to effectively fulfill their representation duties.
2. Solvency Condition: The tax representative must exhibit financial solvency in relation to their obligations as a representative. Alternatively, they may establish a bank guarantee equivalent to a quarter of the annual VAT liabilities of the foreign company they represent.
3. Morality Condition: The tax representative must have a clean record, free from serious or repeated offenses against tax provisions.

The above criteria are described in Article 289A of the French Tax Code.

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French VAT groups

In January 2023, France introduced the full VAT groups regime. Previously, French companies could opt for an administrative simplification that consisted of consolidating all VAT due into a single payment, allowing for cash flow advantage for groups of companies. In addition to each member's VAT return, the head of the group had file a monthly consolidating VAT return.

Where more than one taxable persons are closely bound by financial, economic, and organizational links, these companies may form part a VAT group and be treated as a single taxable person for VAT purposes in France. A VAT group implies that there is a company and one or more controlled entities.

As regards the VAT group conditions, financial links exist when the same person or business directly or indirectly holds more than 50% of the shares of a member. Organizational links exist when the management of the controlled entities is fully dependent of the controlling entity. Economic links exist where the entities exercise one main activity of the same nature, of interdependent activities, complementary or pursuing a common economic objective, of an activity carried out in whole or in part for the benefit of the other members.

In addition, the following VAT grouping rules apply in France:

• Only French-established businesses can be part of a VAT group.
• VAT grouping is optional in France. Companies can apply for a VAT group when meeting the requirements or they can choose to remain separate entities for VAT purposes.
• There is a specific time frame to apply for the VAT groups regime: the option can be applied until the 31st of October for being effective from January of the following year.
• Once the application is approved, a group VAT number is granted to the group.
• Intra-group transactions are disregarded for VAT purposes. Still, they must keep records of these transactions.  
• Every group member is jointly and severally liable for the VAT debts and penalties of the entire group.
• The minimum time period for a VAT group is three years. After the first three years, entities may come in and out of the French VAT group with the consent of the representative.
• For VAT refund purposes, each member would be considered a separate business unit.
• Members of a VAT group submit one single consolidated VAT return. It is not possible to file separate VAT returns for each entity.
• Finally, invoices issued by the group members must refer to this fact including specific wording, as well as the name, address, and individual and group VAT numbers. The wording can state: « Membre d’un assujetti unique».

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French consignment or call-off stock

The EU introduced a call-off stock simplification that all EU Member States must implement. This was put into place so that businesses that operate under a consignment stock structure do not have to VAT register in the country of destination. The EU introduced an EU wide simplification for call-off stock scenarios that all EU Member States must implement. This simplification allows businesses to operate under a consignment stock structure without having to VAT register in the destination country. France has implemented this simplification.

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Bad debt relief in France

Bad debt is allowed in France. A business can claim VAT back when this amount has not been collected from the customer. The condition is that the supplier has gone through all legal procedures to get the invoice paid. In practice, bad debt relief is possible when all legal actions have been taken and the supplier sends a duplice of the unpaid invoice stating that the original invoice was not paid and therefore, the customer cannot deduct the correspondent input VAT.

Regarding formalities, the business must send the customer a copy of the relevant invoice with the following wording: "facture demeurée impayée pour la somme de €… (net amount) et pour la some de €… (VAT amount) qui ne peut faire l´objet d´une déduction (article 272 Code Général des Impots)"

This VAT will only be deducted by the end of the second year following the year in which the debt became irrecoverable. The corrected amounts are reported in box 21 of the return.

More information (in French) can be found here.

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French import VAT deferral and postponed import VAT accounting

Normally, import VAT is paid upon arrival of the goods. However, to compensate for the cash flow disadvantages of these rules, most countries allow simplification where this VAT is either paid at a later stage (so called "import VAT deferral allowance") or import VAT is reverse charged in the next VAT return of the business importing the goods. This system is usually referred as "postponed import VAT accounting". France introduced an automatic and mandatory application of postponed import VAT accounting, hence allowing reverse charge on all imports made by those taxpayers with a French VAT number.

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French Postponed import VAT accounting

In France, it is not necessary to make any specific request or meet any requirements in order to apply import VAT reverse charge. The VAT returns will be pre-filled with the import VAT declared at Customs.

French tax authorities will pre-complete import VAT amounts as due and deductible (reverse charge) in VAT returns, so that taxpayers can review those amounts that are automatically populated before proceeding with submission of the VAT returns.  

For more information on this update, please refer to the article published in this website.

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Customs (bonded) warehouse and VAT warehouse in France

Customs or bonded warehouse is available for goods that have not cleared customs in the EU (T1). VAT and excise duties are not due when these goods are directly placed in the Customs warehouse. As soon as they exit this regime, these amounts are due. Sales within the customs warehouse are zero rated. This regime is only available for EU based companies. An application needs to be submitted to the Customs authorities and, once approved, taxpayers should issue invoices for sales under Customs warehouse regime with a reference to the authorization number received and the name of the Customs warehouse.

VAT warehouse is available for cleared goods (T2). These goods have already paid customs duties. The conditions are similar to those of Customs warehouses. Limit fiscal representation may be used on VAT warehouse transactions. Also, the warehouse keeper is liable to record all movement within the VAT warehouse.

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French cash accounting

Taxable persons that do not make any intra-Community supplies or whose annual turnover is less than EUR 300,000 (when intra-Community supplies are made) are able to participate in the cash accounting scheme in France. Under this scheme, VAT is due on the goods or services supplied when the payment or partial payment by the customer is received.

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French Reverse Charge

French reverse charge for non-established companies

According to art 194 of the VAT Directive, Member States may implement an optional reverse charge on supplies made by non-established businesses. France has introduced an extended version of this reverse charge.

Where a non-established supplier sells goods or services to a VAT registered client, domestic reverse charge applies. It is not relevant if the supplier is registered or not. Regarding the customer, it is not relevant if it is established. As long as the customer has a VAT number, reverse charge applies.

The following reference should be included in the invoice when domestic reverse charge by a non-established supplier applies: “Autoliquidation – Article 283-1 du CGI”."

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Reverse charge on B2B Services in France

Article 196 of the VAT Directive requires the reverse charge mechanism on all services subject to the B2B rule introduced in art. 44 of the same Directive. The B2B rule locates the transaction where the business customer is located. In case the customer is a private individual, B2C rules locate the transaction where the supplier is located.

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According to the general B2B rule, any business not established in France supplying services to a French registered customer will not charge any VAT and the transaction will be reverse charged by the customer.

There are however a number of exceptions to this rule. Where these exceptions apply, reverse charge is still applicable in France:

• Services connected to immoveable property are located where the property is located.
• Passenger transport services will be located where the transport takes places (apportioned if necessary).
• Catering services are located where the catering takes place.
• Short term leasing of means of transport are located where the vehicle put at the disposal of the customer.
• Access to conferences, fairs and exhibitions is located where the event takes place.

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French use and enjoyment rules

Member states can introduce another exception to the B2B rule according to the place where the services have been used and enjoyed. This exception may be introduced to avoid double taxation (positive use and enjoyment rules) or avoid non-taxation (negative use and enjoyment rules) or both. Check out our article for more information on use and enjoyment rules in the EU.

France has introduced both, the negative use and enjoyment in a number of B2C services and positive use and enjoyment rules on certain B2B services.

The law (article 259 C of the French VAT Code) brings the place of supply to France on services when the customer is non-taxable person established or domiciled in France, the supplier is outside the EU and the service is effectively used and enjoyed in France. The following services are excluded: services linked to immoveable property, cultural services, passenger transport and transport of goods, travel agencies, electronically provided services, intermediary services and short term means of transport. In case the supplier is established in France, the usual B2C rules apply as per the VAT Directive.

Use and enjoyment rules also apply on certain B2B services rendered to a French established customer when the service is used and enjoyed outside the EU. Where applicable, the place of supply is deviated to the country where these services are used. The following services are included: processing services (repair, transform, etc.), transport of goods, vehicle leasing and storage, loading, unloading of goods (usually ancillary to transport services).

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Reverse charge on specific goods in France

Domestic reverse charge may also apply on certain goods with different conditions in each case. This regime is often introduced on products that are more likely to be used for carousel fraud purposes.

The conditions for reverse charge to apply change depending on the goods traded.

Gas and electricity: The following rules apply on French reverse charge on gas and electricity:

• Reverse charge applies always applies on supplies of gas and electricity by non-established suppliers to customers established in France
• If the gas and electricity is ultimately used France, reverse charge also applies if the customer is only VAT registered in France
• If the gas and electricity is used for other purposes than their actual consumption in France, reverse charge applies on all directly related transactions to gas and electricity supplies. In these cases, reverse charge applies even if the supplier is established in France, the only requirement is that the customer is registered for VAT purposes

The following reference should be included in the invoice: "Autoliquidation – Article 283-2 quinquies du CGI"

Other goods and services: Reverse charge applies to the following goods and services under the applicable conditions.

• Recycling and waste services when the customer is VAT registered. Reference on the invoice: "Autoliquidation – Article 283-2 sexdecies du CGI".
• Supplies of investment gold. Reference on the invoice: "Autoliquidation – Article 298 sexdecies D du CGI".
• Supplies of services connected to immoveable property to a VAT registered subcontractor. Reference on the invoice: "Autoliquidation – Article 298 sexdecies D du CGI".
• Supplies of greenhouse emissions allowances. Reference on the invoice: "Autoliquidation – Article 283-2 septies du CGI"
• Transfers of certificates relating to guarantees of origin and production certificates in electricity and gas field. Learn more. Reference on the invoice: "Autoliquidation – Article 283-2 septies du CGI".
• Supplies of electronic communication services not subject to the tax of article Article 302 bis KH CGI. Condition is that the customer is VAT registered for VAT in France. Reference on the invoice: "Autoliquidation – Article 283-2 octies du CGI".

Have a look at the article 283 in the French Tax Code regulating the previous reverse charge scenarios.

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French VAT numbers: SIREN or SIRET?

The French tax authorities issue different numbers to registered businesses. Each of these numbers has a different meaning and format:

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Siren Number

SIREN numbers are issued by the Statistical authorities (INSEE). It is made up of 9 numbers. The first 8 numbers do not have any meaning and the 9th digit is only used to double check the logarithm in the first numbers. More info (in French) can be found in this webpage of the French authorities

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Siret Number

SIRET numbers are made up of 14 numbers. The first 9 digits are the SIREN number and the following 5 digits are the NIC number (Numéro Interne de Classement). The SIRET number provides information about the location of the business in France (for established companies). More info (in French) can be found in this website of the French authorities

The EU VAT number must be used for all intra-Community movements. It is made up of the acronym for France "FR" followed by two digits to double check the logarithm and the 9 digits of your SIREN number

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Convert your SIRET number to your VAT number

This tool will automatically convert your SIRET id into a VAT number. Enter your SIRET and click on convert.

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VAT Returns in France

Frequency of French VAT returns

As a general rule, VAT returns are filed monthly in France. Quarterly or annual VAT filing may be allowed in specific cases. Also, the following scenarios determine the application of normal or simplified regimes:

• Simplified regime (régime du réel simplifié): Companies with a turnover on supplies of accomodation and trading activity between €85,800 and €818,000, and on supplies of services and liberal professions between €34,400 and €247,000, and with a total output VAT in the preceding year below €15,000.
• Normal regime (régime du réel normal): Companies with a turnover above the €818,000 for accomodation and trading activity, and €247,000 for services, and whose VAT due the previous year did exceeded €15,000.

Annual filing is also possible for small enterprises, however, this scheme is rather exceptional for foreign businesses due to the large number of conditions and requirements.

The following reporting periods apply under the normal regime:

Frequency of filing

Have a look to our article about how to calculate the EUR 4,000 threshold of VAT due for changing the frequency of filing.  

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French VAT Return Deadline

French VAT returns must be submitted and paid between the 15^th and 24^th day of the month following the reporting period. The exact date depends on the competent tax office, which depends on the location of the establishment or fiscal representative.

Foreign non-established businesses need to file VAT returns by the 19^th day of the month following the reporting period. If the due date falls on a Saturday, Sunday or public holiday, the date is shifted to the next working day.

Established businesses or non-EU companies registered via fiscal representative will be allocated a due date depending on their legal form and the first letter of the business name.

Official information published by the authorities about due dates and VAT return obligations for established and non-established businesses can be found (in French) here.

Regarding bank holidays in France, the authorities publish the applicable due dates every year. The following link provides the 2021 due dates.

Finally, EU businesses only supplying rental services of immoveable property that have opted to tax the property will need to file their VAT returns by the 24^th of the month following the reporting period. The same deadline applies also to businesses making imports in France following the mandatory import VAT reverse charge.

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French VAT Return Payments

All VAT payments in France need to be made by direct debit. This system is called "telepaiements" and it's mandatory for all VAT registered businesses, including non-established companies in France. Only bank accounts opened in France or in one of the SEPA countries (except UK) are accepted.

To set up the direct debit, the taxpayer needs to create an account in the tax authorities' portal. Once the account has been created and activated, the bank account details should be added to the following section. In the last step, you should get a direct debit mandate and have it signed by the legal representative and sent to your bank.

Because payments are made via direct debit, there is no need to provide a reference, period or any other detail to the bank. The VAT payment will be instructed automatically by the system and linked to the submitted return.

Exceptionally, it is possible to make VAT payments to the French tax authorities via bank transfer.

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French VAT refunds

Where the total input VAT exceeds the total output VAT for a given VAT return period, the company is in a refund position and can carry forward the VAT credit to the next period or, if the conditions are met, request a refund from the French tax authorities.

VAT refunds can be requested on a monthly or quarterly basis when the total reimbursable amount exceeds €760. Refunds would be requested on an annual basis if the total reimbursable amount in the year exceeds €150. Otherwise, the VAT credit will be carried forward to the next period.

There is no special scheme for frequent exporters in France (abolished in 2014).

In France, the refund is requested by submitting an additional form. The form 3519 must be completed and submitted electronically. The bank certificate, VAT ledgers, invoice copies and authorization to sign this form on behalf of the company are no longer required to be submitted together with the first Form 3519.

Also, companies sending annual VAT returns under a simplified VAT regime must submit the additional form 3517, instead of form 3519.

It normally takes up to 6 months from the moment the request is submitted to receive the VAT refund. This period can be extended for 3 additional months by the tax authorities, in which case the taxpayer would be informed in writing before the six-month period expires. The authorities may always request additional information, particularly where it is the first refund requested or there is a significant deviation from the previous VAT position of the company.

Should the refund not be received within the expected period, the business can initiate an application called "Référé provision" which demands a faster refund through a domestic administrative court of justice. In most cases, however, it is sufficient with a regular follow up with the tax authorities.

Find official information about VAT refund in France under the following link.

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French nil and corrective VAT returns

A nil VAT return needs to be submitted even if there are no transactions to be reported for that period.

A corrective VAT return is normally required when the VAT position changes. However, some conditions apply depending on the amounts corrected. The following scenarios can happen:

• Additional output VAT requires a corrective VAT return. In practice, the French tax authorities allow the correction to be made on the current return where the additional VAT amount does not exceed €4,000. In these cases, the additional invoices, including net and VAT amount as well as invoice date should be added in the correspondence box of the VAT return. If the additional output VAT exceeds €4,000, a corrective VAT return is always required.
• Excessive input VAT reported in the previous return: It can be corrected in the current period. The amount over-deducted must be entered in line 15 (TVA antérieurement déduite à reverser). A written explanation must be added in the Correspondence box.
• If input VAT needs to be added (e.g. invoices found that were not previously reported), these invoices are simply added in the period in which the invoices were found. No need to correct the previous return. In these cases, the additional input VAT is added in line 21 (Autre TVA a deduire) of the VAT return.

Corrective VAT returns are submitted electronically.

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VAT penalties in France

If a VAT return is not filed, the French tax authorities will normally send a “friendly reminder” (relance amiable) after 2 weeks of the statutory deadline. If the return is not submitted after one or several reminders, the following penalties would normally apply:

If an intra-Community acquisition or any other purchase under the reverse charge mechanism is missed, there is a penalty of 5% of the VAT amount. However, there is an administrative penalty that waives the penalty when the taxpayer has voluntarily corrected the error before any notice from the authorities.

Additional penalties may be charged by the authorities, particularly where the corrections are triggered by an investigation or VAT audit.

For penalties on Intrastat and other returns, please see the relevant section.

Marosa can help you submitting an appeal against French penalties received.

Appeals may be submitted where there are grounds to explain the delay on the payment of submission of VAT obligations in France. The French tax authorities will assess each appeal individually and provide an answer within 3 to 4 months.

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French distance sales. VAT on e-commerce

You can find information about the general EU VAT regime on distance sales in our manual about VAT on e-commerce. You may also watch our webinar explaining VAT rules for e-commerce in the European Union.

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French tax authorities contact

Like other EU countries, France has a tax office dedicated to EU non-established businesses. This office can be reached at the following contact details:

Direction des Résidents à l’Etranger et des Services Généraux (DRESG)
Service des Impôts des Entreprises
10 rue du Centre – TSA 20011
93465 NOISY LE GRAND Cedex

Tel: +33 1 57 33 85 00
Fax: +33 1 57 33 84 04

Established companies or non-EU businesses registered via a fiscal representative need to contact the tax office of the region where the establishment or the fiscal representative is located.

The local office contact and many other references can be accessed here.

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French ESL and Intrastat returns

Due date and frequency of French ESL returns

ESL returns are always filed on a monthly basis. Quarterly VAT reporting is not allowed irrespective of the threshold or frequency of filing of the VAT return. The French ESL returns are due in case intra-Community supplies of goods or services are made in a period.

The ESL returns for goods are also known as état récapitulatif des livraisons de biens intra-UE in the local language. As for the European Sales Listing for services, this is known as declaration des échanges de services or DES in local language. These are two different returns in the French VAT compliance system.

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Frequency of filing rules

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Due date rules

For the calculation of the due date, Saturdays are considered as working days.

The French tax authorities publish a calendar every year with the applicable ESL and DES deadlines.

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Specific ESL scenarios in France

The most usual transactions codes in the French ESL:

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French nil and corrective ESL returns

If there are no intra-Community supplies to be reported in a given period, a French nil ESL is NOT due.

Where the information reported in the ESL return is incorrect or incomplete, a corrective return must be submitted as soon as the incorrection is known.

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Penalties on ESL returns in France

Missing an ESL return triggers a penalty of €750 if filed within the first 30 days following the deadline and €1,500 if filed after that date.

Regarding missing data on submitted returns, every box not completed in the DEB or DES return will be fined with €15, with a maximum penalty of €1,500 Euros.

In practice, however, these penalties are often not applied.

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French Intrastat returns

Intrastat returns are always filed on a monthly basis. Quarterly VAT reporting is not allowed irrespective of the threshold or frequency of filing of the VAT return.

The Intrastat return is also known as EMEBI in the local language (enquête mensuelle statistique sur les échanges de biens intra-UE).

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French Intrastat thresholds

In principle, Intrastat return must be submitted only by those taxpayers performing intra-Community transactions in France and that are part of the sample list of companies selected by the authorities for submitting the Intrastat return.

In the past, detailed statistics return had an exemption threshold of EUR 460,000 applying both to Arrivals and Dispatches flow. However, these thresholds are not used anymore, according to the official information. Businesses must not submit spontaneously an Intrastat return, but only upon receiving a letter from the authorities requesting to start submitting the return.