Doing Business in France - RSM International

4.5.2 Rates
The standard VAT rate is 19.6%. A reduced VAT rate of 5.5% applies to most food
products, takeaway food, hotels, gas and electricity delivery services, art works and
products used in agriculture. A special reduced VAT rate of 2.1% applies mainly to
major medicine products and to newspaper sales. The following goods and supplies,
among others, are exempt from VAT:
• goods which are exported from France,
• goods which are delivered from France to another EU state,
• nursing and medical services,
• educational services,
• some financial services.
4.5.3 Registration, filing obligations & formal requirements concerning invoices
4.5.3.1 Registration
There is no VAT registration threshold for resident and non-resident businesses.
Resident businesses or permanent establishments of non-resident businesses should
register with the Enterprises Formalities Centre in which the principle business is
established within 15 days after the start of the business.
4.5.3.2 Filings
Monthly or quarterly forms must be filed. If the collected VAT is higher than the
incurred VAT, a payment must be made in the same time of the declaration. A 10%
fine is applied in case of late payments.
4.5.3.3 Invoices
Taxpayers must issue invoices immediately upon the supply of goods and services.
There are no tax specific invoicing requirements for export transactions. The specific
tax invoicing requirement for EU transactions is that the invoice must contain the
VAT identification number of the client and a reference to the French Tax Code when
the operation is VAT exempt.
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