Expanding to France might open new business opportunities for you. The Hexagon is one of the strongest economies within the European Union. This makes it interesting for foreign sellers to open a new business in France. Are you planning to expand your business to France? In this article you find all necessary information about where and when to apply for your French VAT ID Number.
Antonia Klatt
Last Updated on 3 August 2023
What is a French VAT ID Number?
A VAT Number is also called VAT ID and is necessary in order to sell or conduct business legally in France. For example, a French VAT ID Number is needed to provide bills and invoices to French customers. You may also be required to show your VAT ID Number when renting storage facilities for your goods . Once you have completed a VAT registration in France, you will receive a French VAT ID Number.
Why you need a VAT ID Number in France
The main takeaway is that you MUST register for VAT in France as an online seller from abroad if you plan to store goods in France. This applies to any other EU country.
Distance sellers previously had to register for VAT when they reached the country-specific threshold of 35,000 EUR. As of July 2021, however, the country-specific threshold was abolished. There is a new EU-wide threshold of 10,000 EUR, introduced for distance sales outside the VAT registered country (France in this case).
Exempt businesses are not required to register, but non-French companies must register for VAT if they carry out transactions in France on which they must pay VAT and are granted a right of deduction.
Note, it takes usually between 30 to 90 days until you receive your VAT ID from the French authorities. You should apply early, especially if you foresee to pass the threshold limits to avoid trouble with the French tax office and to avoid penalties.
Storing goods in France
You must get a French VAT ID Number if you intend to store goods in France. Storage of goods will always bind you to have a VAT ID in the EU state you are storing in. That’s why e.g. Amazon FBA sellers need to register for VAT in countries in which they are storing goods in Amazon’s warehouses.
Intra-community shipments are not taxed in France but in the origin EU-country of the shipment. If you already have a VAT ID Number in France, you pay the VAT that applies to your French sales in France, not in the EU-country of origin.
How hellotax can help you with a French VAT ID Number
If you are storing in France you need to register for VAT in France and obtain a French VAT number. Thanks to our team of local tax accountants, hellotax can take care of the applications in the national languages of several European countries and simply let you know once you have received your French VAT ID Number. We also take over all tasks that come with a VAT number, for example the regular submission of VAT returns in France. If you are interested in individual information and a way to automate VAT duties, don’t hesitate to contact us. Book a call today.
The French VAT ID Number: Name and Format
The VAT ID in France is called “TVA intracommunautaire” or short “ID. TVA”. As all European VAT numbers, it starts with the country code – “FR”. The country code is followed by 11 digits. However, in France the first, the second, or both digits can also be letters, e.g., FRXX123456789 or FRX1234567891 FR12345678910.
| Format of the French VAT ID: | |
| Name | TVA intracommunautaire |
| Country Code | FR |
| Format | FR + 11 digits |
| Example | FR12345678901 |
How to apply for your French VAT ID Number
For the reasons mentioned in the paragraphs above, you must apply for a French VAT ID Number. To do so, you contact the French tax office, the “Service des Impôts des Entreprises” (SIE). The application is free of charge; however, you might need good knowledge of the French language or a French speaking person.
Additional documents you must submit:
- Natural person: ID card (copy)
- Juridical person: Articles of association (copy)
- Commercial register (copy)
- Proof of a VAT number in your country of origin. If that is not available, a certificate as proof of their taxable status.
- Proof of business activity in France (e.g., bills, contracts)
- If the application is submitted by an authorized representative, you need to add the original power of attorney (Désignation d’un mandataire)
Note: Some of the documents must be translated into French by a sworn translator and certified by a notary. Once you have completed your registration, you will receive a French VAT number.
If there are no errors in your application, you usually receive your VAT number within 30 to 90 days. Make sure to submit the application in time according to your business plans to avoid delays and inconveniences.
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How often and when are French VAT returns required?
All businesses registered for VAT in France start with monthly VAT returns. If the VAT liability per annum is under 4.000 EUR quarterly returns can be filed instead.
Monthly and quarterly VAT returns in France must be filed between the 19th and the 24th day of the following month which follows the last tax period.
Example: between February 19 to 24 for the monthly return for January or April 19 to 24 for the quarterly return of the first quarter.
How to query for a French VAT ID Number online?
There is an easy way to find existing French and European VAT numbers online. The European Commission developed a tool for this very task – VIES. This tool can help you check VAT numbers of other enterprises in case you plan a cooperation or fusion. You can type in the searched VAT number on VIES and find proof the enterprise you are looking for provides a legal VAT number. It might cause problems to your own company if the enterprise you intend to cooperate with has no legal VAT ID.
Click on the following link to access the tool: VIES VAT number validation
Numbers might not be shown correctly or as present when you type them in. This may have different reasons:
- The number is not existent
- The number has not been activated yet
- The registration of the number has not been completed yet
There could be the case that you type in your own VAT number without finding any or an incorrect result. Do not panic. The activation and the upload to the database might take a while.
Registration because of VAT threshold in France
Update: On July 1st 2021 a new EU-wide threshold was introduced and set at 10,000 EUR. The new threshold replaced all country threshold and takes all intra-European sales into account. Sellers become liable for VAT in every country they are selling to once the combined revenue through cross-border transactions passes the threshold limit of 10,000 EUR.
If you are selling from another EU member state to France, the annual delivery threshold was previously set at 35,000 EUR per year by France itself. Once you passed this limit when importing into France, you needed to register for VAT in France to be able to declare and pay VAT there. If you did not pass the limit, you were taxed in the country you were selling from and in which you were already registered for VAT and no additional VAT duties arose.
Summary
Reaching or overstepping the threshold limit of 10.000 EUR with your sales makes a VAT ID Number in France absolutely necessary. If you plan to store goods in France, a VAT ID Number is mandatory as well. Be aware that the approval takes between 30 to 90 days and that the French authorities mainly communicate in French.
How do I apply for a VAT ID Number in France?
You apply by contacting the SIE. There you have to fill in the necessary forms in French and add the additional documents required.
How does a French VAT ID Number look like?
The VAT number in France consists of the country code (FR) followed by 11 digits, e.g. FR12345678901.
