Tax rate by region France

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Understanding SaaS Sales Tax in France: A Comprehensive Guide

SaaS (Software-as-a-Service) businesses operating in France must navigate a complex landscape of sales tax regulations. This guide provides valuable insights into the intricacies of SaaS VAT in France, helping you achieve seamless compliance and optimize your tax strategy.

France adopted the European Union’s One-Stop-Shop (OSS) system in 2015, streamlining VAT compliance for digital services. The standard VAT rate in France is 20%, applicable to most SaaS offerings. However, specific categories of products or services may be subject to a reduced VAT rate of 5.5%. Notably, exports of goods and intra-community supplies are exempt from VAT.

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France

France (EU) adopted the European Union VAT system for eCommerce sales in 2015. The newest version of this One-Stop-Shop (OSS) was introduced in July 2021.

Official government link: delegfrance-ocde.org

20.00%

E-products and services VAT/Sales tax rate

5.50%

Reduced tax rate

Reduced tax rate product categories

Restaurants, construction and household work, farming and forestry and passenger transport

Exempted product categories

Exports of goods and intra-community supplies

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Within 30 days of the first taxable sale in the country

Online registration possible

Yes

Local representative needed

Yes

Registration procedure

To register your business for VAT in France, you’ll need to complete Form No. 3563, available in both French and English. The registration will take effect on the first day of the quarter following your application submission.
Generally, you’ll be asked to provide the following documents:
An up-to-date copy of your company’s national trade register extract (issued within the last 3 months).
A scanned copy of your original articles of association, along with an uncertified, free translation into French.
A document verifying your company’s bank account details abroad.

List of digital and electronic services liable for tax

E-books, Images, Movies, Videos (purchased or streamed from platforms like Netflix), Downloadable and streaming music (purchased or streamed from platforms like Sound Cloud or Spotify), Cloud-based software and as-a-Service products (SaaS, PaaS, IaaS), Websites, Site hosting services Internet service providers, Online ads Affiliate marketing, Online auctions

Penalties

Late Filing of VAT Returns:
10% of the VAT due if no reminder is sent or if the return is filed within 30 days of the first reminder.
40% of the VAT due if the return is filed more than 30 days after the reminder.
Additional interest of 0.2% per month of delay.

Late Payment of VAT:
5% of the VAT due, plus interest of 0.4% per month of delay.
For persistent late payments, additional penalties may apply.

Late Registration for VAT:
Generally, there are no specific penalties for late registration. However, if you fail to register when required and under-report or underpay VAT, you could face penalties for those specific infractions.

Incorrect or Incomplete VAT Returns:
Penalties can range from 0.2% to 40% of the VAT amount depending on the nature and severity of the error.
Intentional errors or fraud can lead to much higher penalties and even criminal prosecution.

Failure to Keep Proper Records:
Fines can be imposed for not maintaining adequate VAT records or for providing inaccurate information to the tax authorities.

Non-compliance with the Reverse Charge Mechanism:
Failure to apply the reverse charge mechanism correctly in B2B transactions can lead to penalties of 5% of the VAT amount.

Registration threshold

EUR 10.000 for EU-established businesses

Filing interval

Monthly, quarterly or annually

Filing deadline

Monthly Filers: The 19th of the month following the reporting period.
Quarterly Filers: The 19th of the second month following the reporting period.
Annual Filers: The deadline is typically in May of the following year, but the exact date can vary.

E-invoicing requirements

Not mandatory until September 1st 2026

Record keeping

Records must be kept for at least 10 years, including invoices and any documentation related to taxable supplies.

How-To Guides: France SaaS VAT

Step: 1 Determine if you need to register.

Effective July 1, 2003, France requires non-EU vendors (including online platforms) of digital services to consumers (B2C) in France to register for and collect VAT, regardless of the sales amount. The obligation was expanded to EU-established digital services providers effective January 1, 2015.

 

Effective January 1, 2019, France applies a VAT registration threshold of EUR 10,000 for EU-established
digital services providers. The threshold does not apply to non-EU businesses.

  • Non-resident / non-EU suppliers – No VAT registration threshold for B2C digital services.
  • EU-established suppliers (cross-border B2C digital services) – EU-wide €10,000 threshold applies.

Step: 2 Business Registration

Registration must be done via the Guichet Unique (INPI portal) or directly with the Service des Impôts des Entreprises Étrangères (SIEE) for non-EU entities. Non-EU businesses must typically appoint a Fiscal Representative.

Step: 3 TIN/VAT Number

Issued as a VAT Number (Numéro de TVA intracommunautaire) by the DGFiP. Format: FR + 2 digits + 9 digits (SIREN).

Step: 1 Standard VAT Rate

The Standard vAT rate in France is 20% (Standard VAT rate for SaaS/Digital Services).

Step: 2 Determine if you need to register.

To calculate your tax amount, use the following formula:

 

Tax Amount = Net Price x 20%

Step: 3 Reverse Charge (B2B)

It applies to all cross-border B2B SaaS sales. If the seller is outside France and the buyer is a French VAT-registered business, the seller charges 0% VAT. The buyer self-assesses VAT in France.

 

  • Product category eligible for reduced/exempt tax: Yes: Vocational training from registered training organizations exempt from TAX. Provider must be registered training provider.
  • 5.5% on digital books, including downloaded books and audiobooks.

Step: 1 Selling B2C

Supplier must charge 20% French VAT. For non-EU/EU sellers, this is typically managed via the EU VAT One-Stop Shop (OSS) to avoid multiple local registrations.

Step: 2 Selling B2B

VAT is not charged by the seller if the buyer provides a valid VAT ID (Reverse Charge). The invoice must state: “TVA due par le preneur”.

Step: 3 Determine if you need to register.

Invoices must contain:

• Supplier & Buyer Name/Address
• Supplier VAT ID & Buyer VAT ID (for B2B)
• Sequential Invoice Number
• Date of Issue & Service Delivery
• Description of SaaS/Service
• Unit Price (Excl. Tax) & Applicable Rate
• Total VAT Amount & Total Incl. Tax
• Currency (EUR)

Step: 1 Filing Interval

Taxes must be filed typically monthly (Form CA3). Quarterly filing is possible if annual VAT liability is below €4,000.

Step: 2 Filing Deadline

Taxes must be filed between the 19th and 24th of the following month (specific date depends on legal form/location).

Step: 3 Submission

Online via the impots.gouv.fr professional portal (EFI mode). Payment must be made via SEPA Direct Debit (B2B)

 

E-Invoicing Note (2026): Starting Sept 2026, mandatory e-invoicing and e-reporting (Y-scheme) apply to B2B transactions via the Public Invoicing Portal (PPF).

Step: 4 Record Keeping

Tax records must be kept for 10 years.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating French VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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