Case
Your company based in Italy sells goods (clothes) via an online shop platform (e-shop) and manages the shipment of the goods (via an express delivery company) to private individuals located in France.
VAT registration is required and VAT must be paid immediately...
Your company should normally charge Italian VAT on your sales unless the turnover relative to French customers exceeds the threshold of € 35,000. In that case, your company must be VAT registered in France and charge French VAT.
Voluntary VAT registration in France can be also envisaged by your company even if the threshold is not exceeded. This option is interesting in order to apply the French VAT rate (20%) lower than the Italian VAT rate (22%) on your sales.
VAT obligations in France
As soon as the volume of your distance sales goes over the threshold in France, your company has to register for VAT in this country. Once VAT registered, you will be obliged to:
- Issue proper invoices and calculate French VAT due on the distance sales;
- File local periodical VAT returns;
- Make payment of any French VAT due, within the prescribed time limit;
- Keep proper records so as to enable the local VAT liability to be determined;
- Make those records available for inspection by French VAT Authorities on request.
Pay attention to
Companies selling goods via internet to private individuals (B2C) must pay attention to the following issues:
- Monitoring their sales and verify when the threshold is exceeded in one country ;
- In case the threshold is exceeded, proceed to the local VAT registration and charge local VAT.
- Check whether the local VAT is lower than the VAT rate applicable in their country and if affirmative, proceed to a voluntary local VAT registration.