ARTICLE
7 October 2015

New Electronic Payment Rules For VAT In France

TG
TMF Group BV

Contributor

TMF Group experts work from 120 offices in 80+ jurisdictions, making sure that complex administrative tasks are done right and on time. From legal set-up and oversight to regulatory filings, accounting, tax and payroll, we look after our clients’ administrative burdens so they can focus on their businesses.
Local and foreign companies in France will soon be required by law to pay VAT by direct debit
France Tax

Local and foreign companies in France will soon be required by law to pay VAT by direct debit

From 28 October 2015 it will be compulsory for French companies to pay VAT by direct debit. The same rule applies to foreign companies (where they have a non-resident VAT registration in France) as of 1 December.

The penalty for not complying with the new rule will be a fine of 60 euros for each offence.

Banks will be taking the amount directly from company bank accounts on or after the 20th of each month/quarter, so it is necessary to make the appropriate account arrangements in advance.

It is important for companies to note that a French bank account is not required to fulfill the VAT payment obligation; alternative bank account information, including Swift and IBAN, can be provided.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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