• FRANCE - THRESHOLD DISTANCE SALES LOWERED TO EUR 35,000 EUR

FRANCE - THRESHOLD DISTANCE SALES LOWERED TO EUR 35,000 EUR

18 October 2015

The French finance bill for 2016 has been proposed by the Ministry of Finances and Public Accounts and the Ministry of State for the Budget on September 30, 2015. This Finance bill will then be discussed by the parliament in October and voted by year-end. In the framework of the Stability Programme there are only few tax measures planned. One of them is the lowering of the threshold for distance sales.

Distance sales

Under article 3 of the French finance bill, the distance selling threshold should decrease from EUR 100,000 to EUR 35,000.

Accordingly, French VAT will be due if in a calendar year, the total amount of supplies of goods by an EU supplier from another EU Member state to non VAT taxable persons in France exceeds EUR 35,000.

Regulation in line with other EU member states

This proposition aims at a better harmonization with the threshold applied by most countries and a fair competition between EU operators. 
 
This new provision should be applicable to supplies of goods performed as from 1 January 2016.

As a recap, foreign suppliers can also choose to be submitted to the VAT in the EU member state of destination as from the 1st Euro.

Contact

Should you have any further question or should you require a personal advice with respect to the impact of these rules on your company, please contact your usual contact person at BDO or you may send an email to [email protected] for the attention of one of the members of the Competence Center VAT:

  • Erwin Boumans, 02/778.01.00
  • Pascal Dauw, 09/210.54.10
  • Kaatje Bondewel, 02/778.01.00
  • Brigitte Braeckmans, 03/230.58.40
  • Joëlle Teuwen, 081/ 20 87 87