France amended its Tax Code- art. 258B and lowered the distance
selling VAT registration threshold from €100,000 to
€35,000 (net from tax), from 1 January 2016. Distance selling
of goods from another Member State of the European Union (EU), to
France, will be subject to French VAT once the total amount of the
sales to France exceed €35,000 excluding tax. Alternatively, a
supplier can chose to impose French VAT on invoices within the EU
from the first euro. With this new amendment to the French
threshold, France is, henceforth, in harmony with most EU
countries' distance selling thresholds.
VAT rate on sanitary products
Classified as essential products, a tax break has applied to
transactions since 1 January 2016. VAT on tampons and sanitary
towels dropped from 20% to 5.5%. This measure is not extended to
sanitary products for the elderly. The change brings France broadly
into line with the UK, where the charge on women's sanitary
products is 5 per cent.
Combating tax structuring
All VAT registered businesses will be required to use certified
accounting software that fulfils conditions of inalterability,
security, storage and archiving. There will be stricter enforcement
mechanisms on the use of sales tracking software. Companies must be
able to provide the tax administration with a certificate approved
by a third party with the authority to conduct certification audits
at a high security level, or a certificate from the software
A transitional period of two years is permitted for businesses
to make necessary changes to their systems and accounting
practices. From 1 January 2018, penalties of €7,500 will apply
and businesses will have the obligation to comply within 60
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