Understanding and Implementing VAT Reverse Charge in France

• VAT reverse charge shifts liability for VAT from seller to customer
• Applies to businesses established abroad trading with French businesses and VAT-liable subcontractors in construction sector
• Simplifies tax and administrative procedures for foreign businesses and reduces tax evasion
• Import VAT reverse charge applies to both intracommunity imports and imports from countries outside the EU
• Foreign vendor must invoice shipping net of tax and indicate “autoliquidation” on invoice
• French business deducts and pays import VAT when filing VAT declaration to customs without cash advance

Source: stripe.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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