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.
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).