Webinar | E-Commerce: new EU VAT rules for B2C distance sales of goods and services will come into force on July 1, 2021!

A major VAT reform is coming in effect on July 1, 2021 in the Member States of the European Union. Companies providing certain services or deliveries of goods to private individuals located in the EU Member States, will be able to register at the VAT Mini One Stop Shop (MOSS) in a single EU Member State, where they can declare and pay VAT on all of their sales in EU Member States. Read more

La Représentation Fiscale (LRF) is a founding member of the Association of French Tax Representatives

La Représentation Fiscale (LRF) is a founding member of the Association of French Tax Representatives  (Association des Représentants Fiscaux Français  – ARFF), a professional association with a mission to offer its Members a forum for discussion and exchange on any tax or customs subject related to the tasks of accredited tax representative. Read more

As from 1st November 2020 VAT on short term charters is calculated depending on time spent within/outside EU waters

Until now, this assessment, which could result in particular from the terms of the rental contract, had to be corroborated by all means of proof. However, the French tax Authorities were accepting that lessors who experienced difficulties in making a real assessment of the proportion of time spent outside EU waters and regardless of the type of vessel, apply a flat base reduction of 50% on the taxable basis. Read more

Simplification of formalities related to distance sales (B2C) of excise products from January 1, 2020

Finance Law No. 2019-1479 of December 28, 2019 for 2020 has simplified the formalities relating to distance sales of products subject to excise duty.

This provision covers the sales of excise products already released for consumption in a Member State of the European Union and sent directly or indirectly by a supplier not established in France to be delivered to individuals residing in France (B2C).

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New measures (“Quick fixes”) effective January 1, 2020 (B2B)

The finance law for 2020 has transposed the so-called “quick fixes” measures provided for by Directive 2018/1910/EU of December 4, 2018 concerning intra-Community traffic in goods between taxable persons (B2B), with effect as of January 1, 2020.

 

The purpose of these measures is to strengthen the conditions for exemption from intra-Community supplies of goods, to simplify the system of chain sales when an intermediary operator is responsible for intra-Community transport, and to simplify the system of consignments of goods under deposit contract from one member State to another.

 

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Withholding income tax

The withholding income tax came into force on January 1, 2019.

Personal income tax withholding system is intended to adapt the recovery of the tax for one year to the actual situation of the user (income, life events) in respect of that same year, without changing the rules of calculation. Its objective is to eliminate the one-year lag between the collection of income and the payment of income tax.

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New confirmation of the VAT treatment of chain sales where the intermediate buyer-reseller is in charge of the intra-Community transport of the goods

Background

The European Court of Justice (ECJ) recently confirmed the exemption conditions applicable to the first supply made within the framework of cross-border chain sales (e.g. triangular transactions) where intermediate buyer-resellers (e.g. a trading company ‘B’ in chain sales between businesses A-B-C) are in charge of the intra-EU shipment of the goods.  In this case, the key point is whether the intra-EU transport made by or on behalf of B should be ascribed to his purchases (e.g. under incoterms EXW, FOB, FCA where the point of delivery of the first supply A-B is in the first EU member State) or to his sales.

 

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