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French tax point rules

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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. Unlike other EU countries, pre-payments on sales of goods do not create a tax point.
  • Prepayments or advanced payments do not create a tax point on supplies of goods. They create a tax point on supplies of services.
  • Intra-Community acquisitions: Tax point occurs when the goods enter France.
  • Intra-Community supplies: The tax point occurs when the title of the goods is passed to the customer. In case of a contract with a retention of title clause, the tax point occurs when the goods are put at the disposal of the customer.
  • 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.