The thresholds for selling goods go down, go up for services, and change for lawyers and authors. Crossing the lower threshold now means applying VAT from the 1st of January of the next year (so if you crossed the lower threshold in 2024, time to get registered ASAP). VAT now applicable as of crossing the major threshold (and not from the 1st day of the month it is crossed).
This article covers regulations that concern businesses established in France that sell goods remotely or provide services electronically to end consumers – physical persons (B2C). These rules do not apply to B2B transactions. based outside of France but within European Union (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden).
Please note that if you see via an online platform (Etsy, Amazon) you are likely not concerned by the below. Most platforms operate in such a way, that from legal point of view your customer is not the buyer, but the platform itself. Such operations fall under B2B category. If you are not sure, get more information from your platform providor. Also pay extra attention if you are using a fulfillment center outside of France.
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Since the 1st of January 2021, UK is no longer considered to be part of European Union for cross-border trading. This means that if you have a business established in France and have commercial relations with UK, you must be aware of the VAT implications for such transactions.
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If you are a micro-entrepreneur, self-employed (entreprise individuelle), or company that operates under the simplified VAT regime (régime réel simplifié de TVA – yearly turnover less than 840 000€ for sales of goods and hospitality services and 254 000€ for other services in 2024), here is how you need to proceed.
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As of 1st of January 2022, rules for VAT on imports of goods into France changed. All businesses must now auto liquidate VAT (declare as collected and deductible at the same time) on all goods imported into France from outside of EU. The VAT is no longer to be paid to the customs (via transporter) – as opposed to private purchases.
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CFE is a local business tax.
It is to be paid by all businesses, regardless of the form (micro, EI or company). The amount to be paid depends on where your business is registered, the surface of your business premises and the yearly revenue. The amount ranges from 223€ to several thousand, and is calculated according to a complex formula by the tax office.
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Updated with 2025 information.
VAT is a consumption-based tax supported by the final consumer of a good or service. It is collected and reversed to the state by the vendor or service provider, who deducts from the amount collected the VAT paid to suppliers. This article explains the principle in detail. If you run your business as self-employed person in France (micro entrepreneur or entreprise individuelle), you start off as not registered for VAT (franchise en base de TVA). This means that you do not need to charge your customers VAT, or declare and pay VAT to the tax office. As a result, you cannot claim any VAT back on the purchases that you make for your business.
Once you cross certain annual turnover thresholds, you must register to get a VAT number, and start collecting the tax from your customers. You can then deduct the VAT that you have paid to French suppliers for your business related purchases, and need to pay the rest to the tax office. Let’s take a detailed look at your options and steps to follow.
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