French VAT for foreign companies and subsidiaries

Rates. The standard rate is 20%. Reduced rates of 10%, 5.5% and 2.1% apply to specific goods and services.

VAT number. A French VAT number starts with FR, followed by a two-digit key and the company's SIREN number. It must appear on every invoice.

Returns. Under the standard regime, VAT is declared and paid every month. Smaller companies may use a simplified regime with one annual return. See our French tax and compliance calendar for deadlines.

As a general rule, a French company that provides services to a business customer established in another EU country does not charge French VAT. The customer accounts for VAT in its own country: this is the reverse charge.

The invoice must show the customer's VAT number and the mention "Autoliquidation". The French company also files a monthly European services return listing these sales.

When your French entity buys services from a foreign supplier, it usually accounts for French VAT itself on its VAT return: it declares the VAT due and deducts it in the same return. When the company has a full right to deduct, the operation is neutral in cash, but it must still appear on the return.

This applies to management fees and cost recharges invoiced by the parent company. It is one of the points most often missed in the first year. Our page on intercompany invoicing covers these flows.

Sales to EU businesses. A supply of goods shipped to a business customer in another EU country is generally exempt from French VAT, provided the customer has a valid VAT number and the goods physically leave France. Proof of transport must be kept.

Purchases from EU suppliers. The French company accounts for the VAT on its own return.

Imports from outside the EU. Since 2022, import VAT is declared directly on the French VAT return instead of being paid at customs. With a full right to deduct, this avoids a cash outflow.

A foreign company that makes taxable sales in France without a local entity may need to register for VAT in France. A company established outside the EU may also need to appoint a tax representative, depending on its country. This is a case-by-case analysis that we carry out before any registration.

Invoices missing mandatory mentions, such as the customer's VAT number or the reverse charge mention.

Group recharges not self-assessed on the French return.

VAT credits left on the return for months instead of being reclaimed.

Different VAT treatments between the French books and the group reporting.

Some sectors have specific VAT rules, such as real estate, financial services, e-commerce to consumers or events. This page is a general guide, not tax advice for your situation.