VAT applicable to trade in the supply of services in the European Union
Verified 28 May 2024 - Directorate for Legal and Administrative Information (Prime Minister)
The VAT assessment of trade in supplies of services between two the European Union depends on the VAT arrangements of the companies concerned. The rules also change if the customer is an individual (B to C) or a professional (B to B).
Purchases of services
When a French company purchases a service from a trader established in another EU country, it performs a intra-Community acquisition (ACI).
The intra-Community acquisition shall be subject to VAT of the country in which the services are consumed. Thus, when purchasing services, the sale is generally subject to French VAT.
The company subject to exemption from VAT who purchases services from a trader in another EU Member State can no longer benefit from this scheme.
The company must apply for an intra-Community VAT number from the company Tax Office (SIE) on which it depends in order to be able to purchase supplies of services from a trader located in another EU country.
The rules concerning traders exempt from VAT no longer apply. The rules concerning traders subject to an effective system of taxation shall apply to all sales and purchases of the trader.
The rules depend on the VAT system of the French company that buys the goods.
The VAT rules are different when the seller has or does not have a French VAT number.
The seller has a French VAT number
The sale is subject to French VAT and it is up to the seller to charge VAT to the French company.
If the French company has a right of deduction, it may deduct the VAT paid and get refund by the tax authorities. The deduction is made on his VAT return.
For more information on the VAT deduction, see the corresponding card.
How do I declare VAT?
It must indicate the amount HT: titleContent the services it has purchased on line AC of the heading Purchases of services from a taxable person not established in France on its annual turnover statement #3517-CA12.
It must also declare deductible VAT on line 20 or 23 of its turnover tax return.
Online tax account for professionals (EFI mode)
The seller does not have a French VAT number
Since the sale is subject to French VAT, the seller located in another EU country must not charge French VAT. He has to issue an invoice excluding tax (HT: titleContent).
Since he does not charge the French VAT to the French company, it is up to her to reverse charge VAT. This means that it must collect the French VAT on behalf of the tax authorities and remit it itself. If he has a right to deduct, he can deduct on his VAT return the amount of VAT which he has self-liquidated.
For more information on the VAT deduction, see the corresponding card.
How do I declare VAT?
It must indicate the amount HT: titleContent and the amount of VAT on the supplies of services which it has purchased on line AC of the heading Purchases of services from a taxable person not established in France on its annual turnover statement #3517-CA12.
It must also declare deductible VAT on line 20 or 23 of its turnover tax return.
The seller has a French VAT number
The sale is subject to French VAT and it's up to the seller to charge for it.
If the French company has a right of deduction, it may deduct the VAT paid and get refund by the tax authorities. The deduction is made on his VAT return.
For more information on the VAT deduction, see the corresponding card.
How do I declare VAT?
Company must indicate amount HT: titleContent the services it has purchased on line 2A Purchases of intra-Community services on its monthly or quarterly revenue statement #3310-CA3.
It must also indicate the basis and amount of VAT on line 08, 09, 9B or other according to the VAT rate.
They must add the amount of deductible VAT to line 23 of their VAT return.
Online tax account for professionals (EFI mode)
The seller does not have a French VAT number
The sale is subject to the French VAT, the seller located in another EU country must not charge French VAT. He has to issue an invoice excluding tax (HT: titleContent).
Since he does not charge the French VAT to the French company, it is up to her to reverse charge VAT. This means that it must collect the French VAT on behalf of the tax authorities and remit it itself. If he has a right to deduct, he can deduct on his VAT return the amount of VAT which he has self-liquidated.
For more information on the VAT deduction, see the corresponding card.
How do I declare VAT?
It must indicate the amount HT: titleContent goods purchased on the line 2A Purchases of intra-Community services on its monthly or quarterly revenue statement #3310-CA3.
It must also indicate the basis and amount of VAT on line 08, 09, 9B or other according to the VAT rate.
They must add the amount of deductible VAT to line 23 of their VAT return.
Sales of services
The company subject to exemption from VAT who sells services to a trader in another EU Member State can no longer benefit from this scheme.
It must apply for an intra-Community VAT number from the company Tax Office (SIE) on which it depends in order to be able to purchase supplies of services from a trader located in another EU country.
The rules concerning traders exempt from VAT no longer apply. It is the rules concerning traders subject to an effective system of taxation that apply to all sales and purchases of the trader.
The rules depend on the VAT system of the French seller.
The sale of a supply of services to a customer located within the European Union may be subject to French VAT or VAT of the country of the customer depending on whether the customer is a professional (B to B) or a individual (B to C).
The customer is a business subject to VAT
The sale of a service to a professional customer located within the European Union is in principle subject to the VAT of the country in which the customer is located.
There are, however, a few exceptions depending on the nature of the service provided. Examples of such activities include:
- Rental of short-term means of transport available in France
- Provision of travel agency services
- Access to events (ticketing)
- Provision of services in connection with immovable property
Répondez aux questions successives et les réponses s’afficheront automatiquement
General case
The supply of services is not subject to French VAT. It shall be subject to VAT of the country in which the customer is located. Thus, the French company must not charge VAT to its customer and must indicate the indication VAT not applicable - Art. 259-1 of the CGI on his bill.
If, on the other hand, the company in France has an intra-Community VAT number of the country in which its customer is located, it must then invoice him for the VAT of its country. It must then repay the VAT collected to the tax authorities of the country in which its customer is located.
It must indicate the amount HT: titleContent the provision of services which it has performed on line 3 of the heading Other non-taxable transactions on its annual turnover statement #3517-CA12:
Rental of short-term means of transport available in France
These are:
- For maritime transport: maximum 90-day rental
- For other means of transport: continuous rental for a maximum of 30 days
The means of transport may be used to transport persons or objects which can be pulled, pushed or towed by another vehicle designed for this purpose. These include, for example, the following means of transport:
- Automobile
- Motorcycle
- Bicycle
- Caravan
- Boats
- Aircraft
- Military vehicle
- Agricultural vehicle
The rental of short-term means of transport with the provision of the means of transport and France is subject to French VAT. So it must charge french VAT to its customer.
They have to report the amount HT: titleContent and the amount of VAT on supplies of services on line 5A, 06, 6C or 09, depending on the VAT rate applicable to the supply.
Provision of travel agency services
The services provided by a travel agency having its economic headquarters or a permanent establishment situated in France shall be subject to the French VAT.
Thus, the French company must charge the French VAT to its customer.
They have to report the amount HT: titleContent and the amount of VAT on this type of supply of services on line 5A, 06, 6C or 09, depending on the VAT rate applicable to the supply.
Access to cultural, sports and scientific events (ticketing)
When an event takes place in France, the supply of services (ticket, subscription or periodic contribution) linked to that event are subject to French VAT. Thus, the french company must charge VAT to its customer.
FYI
By “event”, for example, we mean sporting events, shows or exhibitions.
The company must report the amount HT: titleContent and the amount of VAT on this type of supply of services on line 5A, 06, 6C or 09, depending on the VAT rate applicable to the supply.
Provision of services in connection with immovable property
When a service is provided attaches to a building, it shall be imposed on the VAT of the place where the property is situated. Thus, if the building is located in France, the services related to it are taxed at French VAT.
If the property is located in the customer's country or another EU country, then the related services are subject to VAT in that country.
These include real estate work or services performed by real estate agents.
Who has to charge VAT?
There are several possible scenarios:
- The services offered are taxable on French VAT : it is up to the french company to charge VAT to his client and return it to the French tax authorities.
- The services provided are taxable at the VAT of the country of its customer : in principle, the company does not charge VAT and it is up to the customer to reverse charge the VAT in his country. On the other hand, if the French company has VAT number of the customer's countryWell, then she has to charge him VAT. It is up to the French company to remit VAT to the tax authorities of its customer's country.
- The services provided are liable to VAT in a country other than France or the country of the customer :
- The French company can opt for the one-stop shop for VAT and declare all sales of services which are not taxable for French VAT and for which it has had to charge foreign VAT. Once they've opted for the wicket, they have to report all the transactions that are reportable.
- The French company must ask for a intra-Community VAT number of the country concerned in order to be able to charge him VAT. It must then remit the VAT to the country's tax authorities.
FYI
Where the French company does not charge VAT, it must indicate on its invoices the compulsory mention : VAT not applicable - Art. 259-1 of the CGI.
How do I report sales?
If the French company has invoiced VAT, it must indicate the amount HT: titleContent the supplies of services which it has made and the amount of VAT on line 5A, 06, 6C or 09, depending on the VAT rate on its annual turnover statement #3517-CA12 .
If the French company has not invoiced VAT or that she has invoiced for foreign VAT, it must indicate the amount HT: titleContent the provision of services which it has performed on line 3 of the heading Other non-taxable transactions on its annual turnover statement #3517-CA12:
The customer is a non-taxable professional or an individual
The sale of a supply of services to a non-taxable professional customer or to an individual within the European Union is in principle subject French VAT. There are, however, some exceptions depending on the nature of the service provided.
Examples of such activities are:
- Rental of short-term means of transport available in France
- Provision of travel agency services
- Access to events (ticketing)
- Provision of services in connection with immovable property
Répondez aux questions successives et les réponses s’afficheront automatiquement
General case
The provision of services is subject to the French VAT. Thus, the French company must charge the French VAT to its customer and remit it to the French tax authorities.
It must indicate the basis HT: titleContent and the amount of VAT on the supplies of services which it has made on line 5A, 06, 6C or 09, depending on the VAT rate on its annual turnover statement #3517-CA12 :
Rental of short-term means of transport available in France
These are:
- For maritime transport: maximum 90-day rental
- For other means of transport: continuous rental for a maximum of 30 days
The means of transport may be used to transport persons or objects which can be pulled, pushed or towed by another vehicle designed for this purpose. These include, for example, the following means of transport:
- Automobile
- Motorcycle
- Bicycle
- Caravan
- Boats
- Aircraft
- Military vehicle
- Agricultural vehicle
The rental of short-term means of transport with the provision of the means of transport and France is subject to French VAT. So the company must charge french VAT to its customer.
They have to report the amount HT: titleContent and the amount of VAT on supplies of services on line 5A, 06, 6C or 09, depending on the VAT rate applicable to the supply.
Provision of travel agency services
The services provided by a travel agency having its economic headquarters or a permanent establishment situated in France shall be subject to French VAT. Thus, the French company must charge the French VAT to its customer.
They have to report the amount HT: titleContent and the amount of VAT on this type of supply of services on line 5A, 06, 6C or 09, depending on the VAT rate applicable to the supply.
Access to cultural, sports and scientific events (ticketing)
When an event takes place in France, the services (ticket, subscription or periodic contribution) linked to that event are subject to French VAT. Thus, the company must charge VAT to its customer.
FYI
By “event”, for example, we mean sporting events, shows or exhibitions.
They have to report the amount HT: titleContent and the amount of VAT on this type of supply of services on line 5A, 06, 6C or 09, depending on the VAT rate applicable to the supply.
Provision of services in connection with immovable property
When a service is provided attaches to a building, it shall be imposed on the VAT of the place where the property is situated. Thus, if the building is located in France, the related supplies of services are subject to French VAT.
If the property is located in the customer's country or another EU country then the related services are taxed at the VAT of that country. These include real estate work or services performed by real estate agents.
Who has to charge VAT?
There are several possible scenarios:
- The services offered are taxable on French VAT : it is up to the company in France to charge VAT to its customer and then remit it to the French tax authorities.
- The services provided are liable to VAT in a country other than France :
- The French company can opt for the one-stop shop for VAT and declare all sales of services which are not taxable for French VAT and for which it has had to charge foreign VAT. Once they've opted for the wicket, they have to report all the transactions that are reportable.
- She has to ask for a VAT number of the customer's country in order to be able to charge him the VAT of his country. They must then remit the VAT to the tax authorities of their customer's country.
It must show the VAT amount on invoices and the VAT registration number of the country where the VAT applies.
How do I report sales?
If the French company has invoiced French VAT, it must indicate the amount HT: titleContent the supplies of services which it has made and the amount of VAT on line 5A, 06, 6C or 09, depending on the VAT rate on its annual turnover statement #3517-CA12 .
If the French company has invoiced foreign VAT, it must indicate the amount HT: titleContent the provision of services which it has performed on line 3 of the heading Other non-taxable transactions on its annual turnover statement #3517-CA12:
The sale of a supply of services to a customer located within the European Union may be subject to French VAT or VAT of the country of the customer depending on whether the customer is a professional (B to B) or a individual (B to C).
The customer is a business subject to VAT
The sale of a service to a professional customer located within the European Union is in principle subject to the VAT of the country in which the customer is located. There are, however, some exceptions depending on the nature of the provision of services.
Examples of such activities are:
- Rental of short-term means of transport available in France
- Provision of travel agency services
- Access to events (ticketing)
- Provision of services in connection with immovable property
Répondez aux questions successives et les réponses s’afficheront automatiquement
General case
The supply of services is not subject to French VAT. It is subject to the VAT of the country in which the customer is located. Thus, the French company must not charge VAT to its customer and must indicate the indication VAT not applicable - Art. 259-1 of the CGI on his bill.
If, on the other hand, she has an intra-Community VAT number of the country in which her customer is located, then she must charge her customer the VAT of her country. It must then repay the VAT collected to the tax authorities of the country in which its customer is located.
It must indicate the amount HT: titleContent the provision of services which it has performed on line 3 of the heading Other non-taxable transactions on its annual turnover statement #3517-CA12:
Rental of short-term means of transport available in France
These are:
- For maritime transport: maximum 90-day rental
- For other means of transport: continuous rental for a maximum of 30 days
The means of transport may be used to transport persons or objects which can be pulled, pushed or towed by another vehicle designed for this purpose. These include, for example, the following means of transport:
- Automobile
- Motorcycle
- Bicycle
- Caravan
- Boats
- Aircraft
- Military vehicle
- Agricultural vehicle
The rental of short-term means of transport with the provision of the means of transport and France is subject to French VAT. So it must charge french VAT to its customer.
They have to report the amount HT: titleContent and the amount of VAT on supplies of services on line 5A, 06, 6C or 09, depending on the VAT rate applicable to the supply.
Provision of travel agency services
The services provided by a travel agency having its economic headquarters or a permanent establishment situated in France shall be subject to French VAT.
Thus, the French company must charge the French VAT to its customer.
They have to report the amount HT: titleContent and the amount of VAT on this type of supply of services on line 5A, 06, 6C or 09, depending on the VAT rate applicable to the supply.
Access to cultural, sports and scientific events (ticketing)
Where an event takes place in France, the provision of services related to that event are subject to French VAT. Thus, the French company must charge VAT to its customer.
FYI
By “event”, for example, we mean sporting events, shows or exhibitions.
They have to report the amount HT: titleContent and the amount of VAT on this type of supply of services on line 5A, 06, 6C or 09, depending on the VAT rate applicable to the supply.
Provision of services in connection with immovable property
When a service is provided attaches to a building, it shall be imposed on the VAT of the place where the property is situated. Thus, if the building is located in France, the services related to it are taxed at French VAT.
If the property is located in the customer's country or another EU country then the related services are taxed at the VAT of that country.
This may be for example real estate work or services performed by real estate agents.
Who has to charge VAT?
There are several possible scenarios:
- The services offered are taxable on French VAT : the French company must charge VAT to his client and return it to the French tax authorities.
- The services provided are taxable at the VAT of the country of the customer : in principle, the company does not charge VAT and it is up to the customer to reverse charge VAT in his country. However, if the company does not have a VAT number of the customer's countrySo, it must charge him VAT. It is up to them to remit it to the tax administration of their client's country.
- Services are taxable at the VAT from a European country other than France and the country of the customer :
- The French company can opt for the one-stop shop for VAT and declare all sales of services which are not taxable for French VAT and for which it has had to charge foreign VAT. Once they've opted for the wicket, they have to report all the transactions that are reportable.
- The French company can ask for a intra-Community VAT number of the country concerned in order to be able to charge VAT to his customer. It must then remit the VAT to the country's tax authorities.
FYI
Where the French company does not charge VAT, it must indicate the compulsory mention VAT not applicable - Art. 259-1 of the CGI on his bills.
How do I report sales?
If the French company invoiced French VAT, it must indicate the amount HT: titleContent the supplies of services which it has made and the amount of VAT on line 5A, 06, 6C or 09, depending on the VAT rate on its annual turnover statement #3517-CA12.
If it has not invoiced VAT or has invoiced foreign VAT, it must indicate the amount HT: titleContent the provision of services which it has performed on line 3 of the heading Other non-taxable transactions on its annual turnover statement #3517-CA12:
The customer is a non-taxable professional or an individual
The sale of a service to a professional customer located within the European Union is in principle subject to the VAT of the country in which the customer is located. There are, however, some exceptions depending on the nature of the provision of services.
Examples of such activities are:
- Rental of short-term means of transport available in France
- Provision of travel agency services
- Access to events (ticketing)
- Provision of services in connection with immovable property
Répondez aux questions successives et les réponses s’afficheront automatiquement
General case
The provision of services is subject to the French VAT. Thus, the French company must charge the French VAT to its customer and remit it to the French tax authorities.
It must indicate the basis HT: titleContent and the amount of VAT on supplies of services made on line 5A, 06, 6C or 09, depending on the VAT rate on its annual turnover statement #3517-CA12 :
Rental of short-term means of transport available in France
These are:
- For maritime transport: maximum 90-day rental
- For other means of transport: continuous rental for a maximum of 30 days
The means of transport may be used to transport persons or objects which can be pulled, pushed or towed by another vehicle designed for this purpose. These include, for example, the following means of transport:
- Automobile
- Motorcycle
- Bicycle
- Caravan
- Boats
- Aircraft
- Military vehicle
- Agricultural vehicle
The rental of short-term means of transport with the provision of the means of transport and France is subject to French VAT. So it must charge french VAT to its customer.
They have to report the amount HT: titleContent and the amount of VAT on supplies of services on line 5A, 06, 6C or 09, depending on the VAT rate applicable to the supply.
Provision of travel agency services
The services provided by a travel agency having its economic headquarters or a permanent establishment situated in France shall be subject to French VAT. Thus, the French company must charge the French VAT to its customer.
They have to report the amount HT: titleContent and the amount of VAT on this type of supply of services on line 5A, 06, 6C or 09, depending on the VAT rate applicable to the supply.
Access to cultural, sports and scientific events (ticketing)
Where an event takes place in France, the services provided in connection with that event shall be subject to French VAT. Thus, the French company must charge VAT to its customer.
FYI
"Event" means, for example, sporting events, shows or exhibitions.
They have to report the amount HT: titleContent and the amount of VAT on this type of supply of services on line 5A, 06, 6C or 09, depending on the VAT rate applicable to the supply.
Provision of services in connection with immovable property
When a service is provided attaches to a building, it shall be imposed on the VAT of the place where the property is situated. Thus, if the building is located in France, the services related to it are taxed at French VAT.
If the property is located in the customer's country or another EU country then the related services are taxed at the VAT of that country.
This may be for example real estate work or services performed by real estate agents.
Who has to charge VAT?
There are several possible scenarios:
- The services offered are taxable on French VAT : it is up to the french company to charge VAT to its client and to remit it to the French tax authorities.
- The services provided are liable to VAT in a country other than France :
- The French company can opt for the one-stop shop for VAT and declare all sales of services which are not taxable for French VAT and for which it has had to charge foreign VAT. Once they've opted for the wicket, they have to report all the transactions that are reportable.
- The French company can ask for a intra-Community VAT number of the country concerned in order to be able to charge VAT to his customer. They must then remit the VAT to the tax authorities of their customer's country.
It must show the VAT amount on invoices and the VAT registration number of the country where the VAT applies.
How do I report sales?
If the French company charged the French VAT, it must indicate the amount HT: titleContent the supplies of services which it has made and the amount of VAT on line 5A, 06, 6C or 09, depending on the VAT rate on its annual turnover statement #3517-CA12 :
If the French company charged Foreign VAT, it must indicate the amount HT: titleContent the provision of services which it has performed on line 3 of the heading Other non-taxable transactions on its annual turnover statement #3517-CA12:
European Commission
European Commission
Ministry of Economy
Directorate General of Customs and Indirect Taxes