Distance sale regime – New procedure for French VAT regularisation with limited penalties
Publié le 02/09/2022
If you’ve discovered that you’ve exceeded the Intra-Community distance selling threshold (harmonized in all EU countries at €10,000 on 1st July 2021) and/or subscribed the OSS in your Member State (MS), you can regularise the VAT due in France since then, with limited penalties.
In May 2022, the French tax authority (FTA) published a notice to encourage non-established businesses in France to regularise the French VAT due, that they have failed to collect on Intra-community distance selling (ICDS). The deadline for this regularisation claim is 30th September 2022.
Such a claim can be made:
- spontaneously – before any French tax audit on the French VAT due;
- by companies that have paid (wrongly) VAT in the MS of departure of the goods.
On a practical aspect, the regularisation file will explain the reason for the request in detail and will include:
- the monthly French rectified VAT returns;
- the supporting documents for these operations with French VAT due;
- the certificate of the VAT payment in the MS of the departure of the goods.
Entities will have to pay the full amount of the VAT due (minimum 3 years) with late interest penalty (0.2% per month) if the request for regularisation is made before the 30th of September 2022. The new regularisation procedure is favourable for the non-established business in France regarding tax penalties.
Note that in case of a tax audit, the penalty could reach 80% of the VAT due, plus the late interest penalty, plus a fine of 750 or 1.500 € for the Intrastat returns (if applicable) back to 10 years maximum.
Exponens is available to assist you or your clients for this specific VAT regularisation claim or any VAT registration in France.