EU VAT in France 2026: Intracommunity Obligations, Rates and Refunds

Short answer — EU intracommunity VAT applies to all French businesses that trade goods or services with partners established in other EU member states. In 2026, rules are largely set by EU Directive 2006/112/EC and the French General Tax Code (CGI). This guide covers exempt operations, the Triangulation mechanism, the VAT OSS portal and VAT recovery from other member states.

French fiscal territory and the European Union#

The French fiscal territory includes mainland France (excluding Monaco), the DOM (Guadeloupe, Martinique, Réunion, Mayotte) and the Collectivité de Saint-Martin. Corsica is included in the metropolitan territory with a reduced rate of 9% on certain products.

However, certain territories are excluded from the French fiscal territory for VAT purposes:

• The following overseas departments and territories: Saint-Pierre-et-Miquelon, Saint-Barthélemy, Saint-Martin (Dutch part), French Polynesia, New Caledonia, Wallis and Futuna, French Southern and Antarctic Lands
• Fiscal enclaves: Andorra, San Marino, Vatican City, Heligoland, Büsingen

Switzerland, although linked to the EU by bilateral agreements, is outside the European Union and is subject to specific rules with specific VAT numbers (EU VAT number — UID).

Fundamentals of intracommunity transactions#

Two principles govern intracommunity VAT:

1. Destination principle: VAT applies in the country of destination of goods or services. For supplies of goods, the VAT of the country of arrival applies. For acquisitions, VAT is self-assessed in France.

2. Place of use principle: services are taxed where they are consumed, according to the rules of the place of establishment of the recipient (Article 44 of Directive 2006/112/EC).

Intra-Community supplies (Art. 262 ter CGI)#

An intra-Community supply is a sale of goods dispatched or transported from France to another EU member state. It is exempt from French VAT under two cumulative conditions:

1. The buyer must be VAT-registered in their country (or a non-taxable legal entity registered for VAT)
2. The seller must document the dispatch or transport of goods to the other member state

Required proofs: transport document (CMR, air waybill), invoice with customer's VAT number, sales contract, buyer's attestation.

Without proof of dispatch, the supply is reclassified as a domestic sale taxable in France.

Intra-Community acquisitions (Art. 283-2 CGI)#

An intra-Community acquisition is the purchase of goods dispatched or transported from another member state to France. VAT is self-assessed by the French buyer under the reverse charge mechanism.

Mechanism: the French buyer charges French VAT on their own return (CA3) and simultaneously deducts it in the same operation. There is no real financial flow — VAT is declared for a net of 0 in most cases.

Exception: non-taxable buyers (individuals) do not self-assess — the seller charges VAT from their country (distance selling mechanism — see below).

Distance selling (distance sales)#

Distance sales (or dispatch sales) concern sales of goods dispatched from one member state to another, where neither the sender nor the recipient is significantly VAT-registered.

Since 1 July 2021, rules changed with the OSS portal:

In 2026, French businesses selling online to European individuals use the OSS portal to declare and pay VAT in each country of destination.

Application conditions#

Triangulation is a specific VAT regime for triangular transactions: three operators in three different member states, with goods moving from State A to State C, without physical passage through State B.

Classic example: A French wholesaler (State B) sells to a German client (State C) goods that move directly from Italy (State A) to Germany (State C). The French wholesaler issues an intracommunity invoice without VAT.

Conditions to benefit from Triangulation:

1. The intermediate operator (the Triangulator) must be VAT-registered in France
2. Goods must be dispatched directly from the country of departure to the country of destination
3. Neither the intermediate operator nor the seller may be established in the country of destination
4. The final buyer must be VAT-registered in the country of destination

Declaration obligations:

• Mention "self-assessment" on the invoice
• Monthly or quarterly return via CA3 form
• Possibly submission of a summary statement if the mechanism applies repeatedly

Pitfalls to avoid with Triangulation#

• Missing proof of dispatch: without transport justification, the mechanism fails
• Transaction with an individual: Triangulation only applies to taxable persons
• Wrong VAT number: the Triangulator must systematically verify the customer's VAT number on VIES

The European One-Stop Shop (OSS)#

Since 1 July 2021, the OSS portal allows businesses to declare and pay VAT due in all member states through a single portal. Three regimes coexist:

Union OSS: for distance sales of goods and B2C services within the EU Non-Union OSS: for B2C services provided by non-EU businesses to European consumers Import OSS: for distance sales of goods from non-EU countries (threshold €150)

Registration on the French One-Stop Shop#

French businesses register via the official portal (impots.gouv.fr/guichet-unique) or via their certified accounting software. Registration is free and available to any taxable person.

Timelines:

• Initial registration: at least 10 days before the first application quarter
• Modification: within 10 days
• Deregistration: within 10 days

Declaration obligations#

The OSS declaration replaces local declarations in each member state. It is due even in the absence of operations (null declaration).

General principle#

A French business that has paid VAT in another member state can, under certain conditions, obtain a refund. The mechanism depends on the 13th Directive (2008/9/EC) for taxable persons established in the EU.

Eligibility conditions#

To recover VAT paid in another member state:

1. The business must be VAT-registered in France and not subject to a flat-rate scheme
2. The business must not be established in the refunding State (otherwise it could not apply for a refund there)
3. The business must not have carried out economic operations in that State during the reference period (with exceptions)

Direct refund procedure#

Via the French portal (OSS):

1. Application via the online form on impots.gouv.fr
2. Reference period: calendar year N-1 or quarter N-1
3. Submission before 30 September of year N+1
4. Destination member states: they have 4 months to process the application

Minimum refund amount:

• Annual: at least €50 of VAT to recover
• Quarterly: at least €400 of VAT to recover

VAT on business expenses#

VAT recovery on business expenses depends on the nature of the expenditure:

Fuel VAT case: recovery is possible via form n°3500-SD for fuel purchased in another member state.

VAT recovery for non-EU businesses#

Businesses established outside the EU can recover VAT via the One-Stop Shop (Non-Union regime) or via bilateral agreements. France has no bilateral system with all countries: requests go through the embassy or a fiscal representative.

VIES: VAT number verification#

The VIES system (VAT Information Exchange System) allows online verification of the validity of intracommunity VAT numbers. Before each operation, it is mandatory to verify the partner's VAT number.

A VIES-verified number protects the seller in case of an audit on the good faith of the operation.

Penalties for errors#

Intracommunity operation without proof of dispatch: the supply is reclassified as a domestic sale in France, with VAT assessment, late interest (0.20% per month) and penalties of 5% to 40% depending on the case.

Invalid VAT number: if the customer's number is invalid at the time of the transaction, the VAT exemption is withdrawn.

Incorrect or missing declaration: penalty of 5% to 40% on evaded duties, plus late interest.

Tax audit on intracommunity exchanges#

DGFiP (French tax authority) and DGDDI (French customs) have automated files allowing cross-checking of data:

• Intrastat declarations (DEB): for goods
• Services declarations (DES): for service supplies
• Automated exchange of tax data (DAC) between European administrations

Absence of consistency between DEB/DES and declared VAT automatically triggers an audit.

Rates are subject to change. Always check current rates on the European Commission website or via VIES.

Hayot Expertise supports businesses in mastering intracommunity VAT:

• Diagnostic of your intracommunity operations and risk identification
• OSS portal setup (registration, declaration)
• Foreign VAT recovery optimisation
• Staff training on VIES controls
• Compliance audit on intracommunity operations

Discover our tax advisory pricing on our dedicated page

Intracommunity VAT is a complex but essential topic for any business trading with Europe. In 2026, the OSS portal has simplified declaration obligations, but audit risks remain. Systematic VAT number verification, shipment documentation and mastery of self-assessment are the three pillars of compliant management.

Discover also our articles on electronic invoicing 2026 and micro-enterprise VAT regime.