The French tax number is different from that of the Spanish one. Like Italy, it is already an EU number. However, Spain needs to obtain a local tax number before applying for an EU number. The French tax number is FR12345678912 (11 digits). Regarding the application for an EORI number, because of Brexit, France will basically need to apply for an EORI number in the future, and the UK's EORI number will no longer be used in the EU.
The tax rate in France is 20%, which is neither high nor low among EU countries. There is only one type of VAT declaration in France, which is monthly reporting. France is different from other EU countries in that it has neither quarterly reporting nor annual reporting. It is relatively simple and single.
Some French VAT reporting requirements:
(1) Highly Preferential Rate (SR), the rate is 21%, the products involved are magazines and maps;
(2) Preferential rate 2 (R2), with a tax rate of 5.5%, covers books and printed materials, physical audio books, some food products, health, beauty and personal care products (nutritional drinks, condoms and other contraceptive aids are not listed one by one, please consult for details)
(3) Preferential rate 1 (R) is 10% and covers coarse and fine salt, pepper, herbs and spices, and bulbs.
(4) Standard tax rate (S), which is a commonly used tax rate for cross-border e-commerce and covers most products.
French TVA tax number: FR12345678901 (11 digits); French TVA declaration has two situations: monthly report (standard) and quarterly report
Going forward if the annual VAT liability is under 4,000 then filing periods may be educated. The deadline for both quarterly and monthly reporting is the 19th of the month (since the tax is paid to the tax bureau by the accountant, the transfer takes time, so it is recommended that customers pay the tax around the 10th).
Regarding fines:
Penalties for late French returns and VAT payments are common. These range from 0.2% for errors, to 5% for late payments of VAT due. Further fines for continuous delays can ramp up to 80%.
Penalties for late filing and VAT payments in France: These range from 0.2% to 5%. Further penalties for continued delays increase to 80%.
The difference between code 3120 and 3220 on the certificate:
3120 is the industrial and commercial category (industrial and commercial entities that have branches, offices and employees in France register for VAT). This category is equivalent to having a company in France. At the end of the year, you need to pay the taxes that local companies should pay, such as business income tax + social security tax, etc., so you don’t need a tax representative, only a tax agent. The tax agent keeps accounts and files tax returns for the company, but the responsible party is the company, not the agent. 3220 means that there is no local office measures, which means that it is basically a non-French offshore company registered for VAT. You only need to pay the VAT on sales to apply for French VAT. You will get two tax numbers:
1. French local business tax number;
2. Value-added tax number.
Some common questions about French VAT:
How to calculate French VAT?
Sales VAT = total sales amount/1.20x0.2
Import VAT = (declared value + first-leg freight + tariff) x 20%
Actual tax paid = sales VAT - import VAT
When is the French VAT declaration deadline?
French VAT declarations must be completed before the 19th of each month. For example, the VAT declaration for November must be submitted to the French tax authorities no later than December 19th.
How to pay French tax?
One is that the customer pays the tax to the accountant, and the accountant helps the customer pay the tax on his behalf; the other is that the customer pays the tax directly to the tax bureau. There are some differences between the two, but it is correct to have the tax representative pay the tax on behalf of the customer. The French tax bureau emphasizes that if overseas e-commerce companies use any other illegal payment or remittance methods, even if the taxes are paid on time and deposited into the tax bureau account, it will cause confusion to the tax bureau and they will be fined and will not receive a tax payment certificate.
The tax paid to the accountant needs to be noted: 3310+1119+the last 9 digits of the tax number
If you pay directly to the tax bureau, you need to note: 3310+1119+Business ID, 11 refers to the month, 19 refers to the year (declaration period)
This is the end of the introduction to French VAT in this issue. If you want to get more information about French VAT, please pay attention and we will continue to answer your questions~
