Reverse Charge Extension in France for Transfers of Energy Certificates
France extends VAT reverse charge mechanism in of energy certificates relating to guarantees of origin and production certificates for gas and electricity.
In a significant development for the energy sector, the French Tax Agency has announced an extension of the VAT reverse charge mechanism. This extension now includes the transfer of certificates related to guarantees of origin and production certificates for electricity and gas.
The announcement was made by the French General Directorate of Public Finance on May 29, 2024, marking a critical update to the VAT system aimed at enhancing transparency and efficiency in the energy market. Have a look at the official announcement. Also, the new reverse charge scenario has been added to Art. 283.2.septies of the French Tax Code.
What is the reverse charge mechanism?
The VAT reverse charge mechanism will now cover the transfer of certificates related to guarantees of origin. It also includes production certificates within the electricity and gas sectors.
This extension is part of France’s ongoing efforts to streamline VAT procedures and reduce fraud within the energy market.
Find an overview of the reverse charge rules in France.