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.
The VATfaqs digest
Global VAT news, delivered Tuesday and Thursday. Free, curated from 50+ official sources, no spam.
No spam · Unsubscribe any time
Melasoft · 26 days ago
France will enforce e-invoicing for B2B transactions from 1 September 2026, requiring all VAT‑registered businesses to receive and issue invoices in UBL, CII, or Factur‑X formats via certified dematerialisation platforms. The obligation extends to SMEs and micro‑businesses on 1 September 2027, and the Business Directory based on SIREN numbers will replace email addresses for recipient identification.
E-Invoice.app · about 1 month ago
The blog explains that ISO 27001 certification is becoming a mandatory requirement for e‑invoicing platforms in several jurisdictions, notably France, the Netherlands, Australia, and New Zealand. It outlines the key dates, such as France’s September 2026 deadline and the October 2025 completion of the ISO 27001:2022 transition, and details the certification’s three‑year validity and surveillance audit schedule.
Fonoa · about 2 months ago
The French e-reporting framework complements e-invoicing by capturing B2C, cross-border B2B and certain payment transactions through Flow 10 (F10). Flow 6 (F6) confirms acceptance or rejection of the reporting file. Reporting frequency and deadlines vary by VAT regime, with standard monthly taxpayers submitting transaction data three times a month and payment data once, all due 10 days after each period.
VATabout · about 2 months 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 · about 2 months 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 · 2 months 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.
Put your brand alongside trusted tax-tech intelligence across 150+ countries.
Key Takeaways
If the nature of the future service and its tax treatment are clear, VAT is due immediately on payment; otherwise VAT is triggered when the credits are redeemed.
The base fee is taxed upfront, while variable usage is taxed in arrears as it accrues.
The taxable amount for the entire period must be adjusted and credit notes or adjustments issued.
The wrong VAT rate may be applied; the rate must correspond to the supply date, not the processing date.
Treat them as discounts that reduce the taxable amount, not as silent deletions, to maintain an audit trail.
Primary source
Read the full article at Bloomberg TaxThis summary was published on VATfaqs.com on 9 March 2026. It relates to VAT developments in France. The original source is Bloomberg Tax.
