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.
The new CIBS becomes effective on 1 September 2026 for all VAT provisions.
Taxpayers may continue to reference CGI articles until 31 December 2027.
The ordinance transposes mandatory elements of the ViDA package and technical measures related to the Import One-Stop Shop (IOSS) into the CIBS.
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VATabout · 4 days ago
The French Tax Authority issued guidance on March 4, 2026 clarifying VAT obligations for dropshipping operations that do not use the IOSS. The guidance sets thresholds for import VAT liability, specifies when the seller or consumer is responsible, and requires non‑EU sellers to appoint a tax representative. It also defines the place of taxation for cross‑border distance sales.
VatCalc · 5 days ago
France’s 2026 Finance Law introduces stricter penalties for non‑compliance with the upcoming e‑invoicing and e‑reporting regime, effective from 1 September 2026. The law sets €50 fines per non‑approved invoice, progressive penalties for failing to receive e‑invoices, and €500 per missing e‑reporting transmission, capped at €15,000 annually. A first‑offence tolerance allows penalty waivers if errors are corrected within 30 days.
VatCalc · 6 days ago
France has issued guidance clarifying VAT obligations for dropshippers who do not use the IOSS scheme. The ruling specifies that parcels below €150 are cleared in the final destination Member State and the seller is not liable for French VAT, while parcels above €150 trigger import VAT liability in France. It also outlines conditions under which the customer or seller bears import VAT when goods are delivered within France and requires non‑EU sellers to register and possibly appoint a French tax representative.
Bloomberg Law · 7 days ago
The article explains how usage‑based billing models in AI and SaaS create VAT compliance challenges, including timing of tax points, prepaid credits, hybrid pricing, tiered pricing, and the need for visibility into billing systems. It stresses that tax teams must engage early with product, billing, and finance to manage risk.
Bloomberg Tax · 8 days ago
The article explains how usage‑based billing models—common in AI and SaaS—create complex VAT timing issues. It outlines when VAT is due for prepaid credits, hybrid pricing, tiered discounts, and the risks of delayed data processing. Tax teams are urged to embed VAT rules into billing workflows early to avoid compliance gaps.
Fonoa · 11 days ago
France will enforce a comprehensive e‑invoicing and e‑reporting regime from 1 September 2026. Large and mid‑size enterprises must issue and receive electronic invoices immediately, while SMEs and micro‑enterprises will join the rollout in 2027. The reform covers domestic B2B, B2C, and cross‑border transactions, with special rules for overseas territories.
