Global VAT & Indirect Tax News

France has rolled out a comprehensive e‑invoicing and e‑reporting regime that applies to all VAT‑registered businesses. Large and intermediate enterprises must send and receive structured e‑invoices from September 2026, with the sending obligation extended to all businesses by September 2027. The system requires real‑time reporting via Approved Platforms and imposes penalties of up to €15,000 per year for non‑compliance.

The article reports that SAP’s newly approved Platform Agreed (PA) meets French e‑invoicing requirements, but users remain concerned about integration and fixed deadlines. It notes that the reform is already in place in Italy and Mexico and will be extended across the EU in the coming years, with full implementation in France scheduled for 2026.

French VAT reforms introduced on 1 January 2026 now require UK exporters using DDP into France to hold a French VAT number or have an EU-based importer of record. The changes tighten conditions for DDP movements and increase operational and reporting burdens, prompting exporters to reassess provider capabilities. The reforms aim to strengthen compliance and competitive advantage for logistics operators.

VATCalc explains how France’s 2026 reforms are tightening access to Article 143 import VAT relief, requiring non‑EU importers to hold a French VAT registration or an accredited fiscal representative. The EU exemption remains unchanged, but enforcement across the EU is becoming stricter, with the European Court of Auditors pointing out weaknesses in Procedure 42. Businesses must adapt supply chains or adopt technology to meet the new compliance thresholds.

France has introduced a temporary €2 small parcel tax on low‑value imports effective March 1 2026. The tax applies to parcels below €150, is levied per item at the time of import, and will remain in force until the EU‑wide parcel tax takes effect in November 2026, but no later than December 31 2026. The liable party is the person responsible for import VAT on the H7 declaration, covering IOSS users, French VAT registrants, and others.

The French Administrative Court of Appeal of Paris issued Decision No. 25PA00785 on Feb. 4, 2026, clarifying that the ordinary law procedure for VAT refunds for taxable persons outside the EU does not apply when the taxpayer did not carry out transactions during the period. The UK company’s claim for an import VAT credit was partially denied by the Court of Montreuil and upheld by the Court of Appeal.

The 2026 Finance Bill passed on 2 February 2026 establishes mandatory B2B e‑invoicing and B2C e‑reporting in France from 1 September 2026. Article 28 details the platform model, penalties, data transmission requirements and clarifies the roles of approved partner dematerialisation platforms and the Chorus Pro portal.

The French 2026 Finance Bill introduces a €2 customs charge on low‑value imports (≤€150) from non‑EU countries, effective 2026, targeting e‑commerce parcels. The measure is expected to raise about €400 million annually and is part of broader EU customs reforms, including a €3 interim levy from 1 July 2026 and a planned €2 levy across the EU by 2028.

The French Administrative Court of Appeal of Paris issued Decision No. 24PA02339 on Jan. 30, 2026, clarifying a company's liability for corporate income tax, social contributions, VAT, and payroll tax, and its eligibility for research tax credits. The court found the audit was not irregular and that a director’s driving course expense was not professional, granting only partial relief.

France’s administration has finalized preparations for the mandatory B2B e‑invoicing and B2C e‑reporting regime that will take effect on 1 September 2026. A voluntary pilot began on 23 February 2026, involving 139 approved platforms and nearly 600 000 companies, with key milestones scheduled through February and a national communication campaign in March.

France will transfer all VAT provisions from the General Tax Code into a new consolidated framework, the Code de l’imposition sur les biens et services (CIBS), effective 1 September 2026. The reform modernises the legislative structure, codifies EU measures such as the ViDA package and IOSS, and allows a transition period until 31 December 2027. E‑invoicing rules remain outside the CIBS for the time being.

France's DGFiP has released the first official list of definitively certified Approved Platforms for e‑invoicing, with just over 100 platforms now certified. The list will be updated as platforms complete audits, and the mandatory e‑invoicing go‑live is set for 1 September 2026, following a pilot phase in February 2026. Companies must use an Approved Platform and submit an audit report within a year of certification to maintain a renewable three‑year period.

France will terminate the one‑off fiscal representation route for Customs Procedure 42 on 1 January 2026, requiring non‑EU sellers to register for French VAT in their own name and file ongoing returns. The change removes the simplified “France‑as‑gateway” model and forces operators to adopt a formal French VAT footprint or reroute through other EU members.

On 15 January 2026 France and Germany will roll out updated hybrid e‑invoicing standards—Factur‑X 1.0.8 in France and ZUGFeRD 2.4 in Germany—aligned with the EU EN 16931 framework and the French AFNOR XP Z12‑012 standard. The update adds support for complex invoice structures, a newer UN/CEFACT CII release, clearer rounding tolerance rules, and updated documentation. Businesses invoicing in either country should verify ERP compatibility and adjust tax logic to meet the new tolerances.

France has proposed raising its VAT registration thresholds for goods, services, legal services, and non‑profit organisations, but the changes are currently on hold pending budget approval. The new thresholds would be €93,500 for goods and accommodation services, €41,250 for services, €55,000 for legal services, and €80,011 for non‑profit organisations, with an EU‑wide scheme offering a €100,000 pan‑Europe threshold for small businesses.

This guide outlines France’s VAT framework, including standard and reduced rates, registration thresholds, and upcoming e‑invoicing requirements. It also details compliance obligations for non‑resident businesses, digital services, and import VAT deferment schemes.

France confirmed its phased B2B e-invoicing rollout starting September 2026 for large enterprises, with full mandate for all businesses by September 2027. Factur-X is one of three mandatory formats.