VAT on distance selling from another member state to France: new threshold in France: 35 000 Euros

14.03.2016

The tax treatment described hereinafter applies to distance selling with the origin in another member state, or, in application of II of the article 258 B of the General Debating Code, in a third country or a third territory, but imported on the territory of a member state by the seller.

The place of supply is in France when the seller has generated distance sales to France in an amount exceeding the threshold mentioned in 1° of I of the article 258B of the General Debating Code.

The amount of the threshold has to surpass the previous calendar year, or, if this is not the case, the current calendar year at the time of the considered distance sale. However, when the delivery amount exceeds the threshold, the place of supply is located in France. The same applies for subsequent deliveries, regardless of the amount.
Article 9 of the 2016 finance law n° 2015-1785 of 29th of December 2015 has lowered the threshold amount from 100 000 € to 35 0000 € excluding VAT for delivery which chargeable event occurred after the 1st of January 2016.
The result is that for 2016, the amount of the threshold to be determined for the previous calendar year amounts to 100 000 € for supplies which chargeable event is before this date.

Example 1: 
If a Spanish seller has, in 2015, generated sales to France, amounting to or exceeding 100 000 €, the place of the generated sales is in France from the 1st euro.

Example 2:
If a German seller has, in 2015, generated distance sales to France in an amount of 60 000 €, the place of distance sales to France realized during the year 2016 is located in Germany, under the condition that the threshold of 35 000 € is not reached. The distance sales realized in 2016 to France exceeding this threshold, as well as subsequent sales are located in France.

Calculation of the threshold:
The threshold is calculated on the basis of the pre-tax value of the distance sales realized from the origin member state by the seller or on his behalf to France.
Neither supplies of new means of transport, nor the delivery of products subject to excise duties the seller realized from France are taken into account.

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