The French Finance Bill for 2026 has been adopted and introduces a new €2 flat fee on low-value parcels imported from non-EU countries. The measure will apply from 1 March 2026. The fee applies to all consignments with an intrinsic value not exceeding €150. It is separate from customs duties and VAT and is intended...
In a judgment dated 15 January 2026, the Administrative Court of Nice dismissed the claims brought by the US company Imperial Business LLC and confirmed its liability to French corporate income tax and VAT for the years 2011 to 2018. At the heart of the case lies a consistent principle: tax treatment follows economic reality,...
In a decision dated 16 December 2025, the Bordeaux Administrative Court of Appeal clarified the criteria used to distinguish between a supply of goods and a supply of services for VAT purposes. This distinction is critical, as it determines both the applicable VAT treatment and the timing of VAT becoming due. The case concerned Laser...
In a decision dated 23 October 2025, the Administrative Court of Martinique reaffirmed that the right to deduct VAT is subject not only to substantive conditions, but also to strict reporting formalities, including where errors are corrected through amended VAT returns. The case concerned the company Foyalbaz, which challenged the refusal of the French Tax Authorities...
In a ruling published on 14 January 2026, the French Tax Authorities clarified the VAT treatment applicable to diploma verification services provided by a company established in France via an online platform. These services fall under the standard VAT place-of-supply rules. When supplied to private individuals, French VAT is due as soon as the service provider is established in France, even...
On 14 January 2026, the French Tax Authorities issued a clarification on how the VAT reverse charge applies to the resale of electricity and gas. In short, when energy is sold to a business acting as a reseller, the supplier does not charge VAT. The reseller accounts for the VAT itself through its VAT return....
Implications for Businesses and Tax Professionals France is continuing to modernise its tax legislation with the reorganisation of VAT into the “Code des Impositions sur les Biens et Services” (CIBS). The new structure will take effect from 1 September 2026. This reform does not change the substance of VAT rules; rather, it reorganises and clarifies...
Since 1 January 2026, all VAT-registered businesses in France carrying out Customs operations are required to use an EORI number based on their company SIREN. Until now, France had allowed EORI numbers to be issued using a company’s SIRET establishment number, meaning that several EORI numbers could exist for the same legal entity. As this...
Check the risks involved and the late payment interest applied in case you have not fulfilled your VAT obligations in time in a state of the European Union.
Since 1 December 2025, all French Kbis extracts now include the EUID (European Unique Identifier), a single European identification number designed to harmonise company identification across the European Union. This development, implemented in line with Directive 2012/17/EU on the interconnection of business registers, marks an important step towards more reliable and secure legal information for...
Clarification for chain transactions The question of which reduced VAT rate applies to prepared food products often raises issues, especially in chain transactions involving several intermediaries. A recent clarification from the French Tax Authorities, published in BOI-RES-TVA-000205 on 19 November 2025, provides practical guidance for affected businesses. In a typical chain transaction, a franchisee sells...
What changes with the Conseil d’Etat ruling of 12 November 2025 Furnished residential rentals are normally exempt from VAT under Article 261 D(4) of the French Tax Code, whether they are long term, seasonal or short term. However, some rentals can fall within the scope of VAT when the services provided start to resemble hotel...
France – threshold maintained for 2025 On 3 November 2025, Law no. 2025 1044 was enacted, reinstating and stabilising the VAT exemption thresholds (“franchise en base”) for micro entrepreneurs and small businesses. This reverses the change initially planned under the 2025 Finance Act, which would have introduced a single € 25,000 threshold for all activities...
