New guidance on cross-border €10,000 registration threshold; distance selling; registration and invoicing; marketplace deemed supplier
France has issued new guidance on the implementation of the EU e-commerce VAT package which came into effect from 1 July 2021. This follows a public consultation in the Autumn. The administrative clarifications include:
- How to calculate the €10,000 threshold below which resident businesses may chose to use the French VAT regime on distances sales to other EU states rather than that of their end consumer.
- How to use the VAT margin scheme under the CGI tax code with the e-commerce rules
- Clarification of the deemed supplier liability rules
- Place of deliveries of tangible movable property – Rules applicable to distance sales of goods within the framework of electronic commerce
- Derogations from the general rule telecommunications, television and broadcasting services and services provided by electronic means
- Deduction rights – General principles – Transactions giving rise to the right to deduct
- Tax and reporting obligations for digital marketplaces or facilitators
- Tax and reporting obligations under the Special Arrangements for couriers and fast parcel deliverers
- Marketplace deemed supplier obligations
- Invoicing obligations
- Special schemes and the new rules – Second-hand goods, works of art, collectibles or antiques
EU e-commerce package reforms
The EU introduced three main reforms to simplify the cross-border VAT compliance regime and help tackle VAT fraud:
- Withdrawal of the distance selling thresholds and the introduction of the new One Stop-Shop OSS VAT return
- Ending the €22 imported low-value consignment VAT exemption, and introduction of the new Import One-Stop Shop return for consignments not exceeding €150
- New deemed supplier liabilities for facilitating marketplace
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VAT in the Digital Age further reforms
EU VAT in the Digital Age reforms include a channel for and extension of OSS and IOSS to other B2C and B2C transactions as EU Single VAT registration. This emerged from the 2020 Tax Package proposals for a fairer and more efficient EU tax regime.