French General Tax Code
In forceI.-1. The place of supply of the services referred to in 10°, 11° and 12° of Article 259 B is deemed to be in France when they are provided to non-taxable persons who are established, have their domicile or habitual residence in France.
2. By way of derogation from 1 of this article, the place of supply of these services is not deemed to be in France when they are supplied by a supplier who is established in only one other Member State of the European Union or, in the absence of an establishment, who has his domicile or habitual residence in this Member State alone, to non-taxable persons who are established or have their domicile or habitual residence in France, and that the total value of these services and of the intra-Community distance sales of goods carried out by this taxable person did not exceed, during the calendar year in progress at the time of the service or of the intra-Community distance sale of goods and during the previous calendar year, the threshold of €10,000 excluding value added tax. This threshold is assessed taking into account all the transactions concerned supplied to non-taxable persons established or having their domicile or habitual residence in Member States other than the one in which the taxable person is established or has his domicile or habitual residence.
When, in the course of a calendar year, the threshold referred to in the first paragraph of this 2 is exceeded, the provisions of 1 shall apply to the services supplied from the day on which the threshold is exceeded.
3. 2 shall not apply where the taxable person has opted, in the Member State in which he is established or in which he has his domicile or habitual residence, for the place of supply of these services to be in France in accordance with 1 and for the place of supply of his intra-Community distance sales of goods to be in the Member State to which the goods sold are dispatched.
II.-1. The place of supply of the services referred to in 10°, 11° and 12° of Article 259 B is also deemed to be located in France when they are supplied by a service provider who is established solely in France or, in the absence of an establishment, who has his domicile or habitual residence solely in France, to non-taxable persons who are established, have their domicile or habitual residence in other Member States of the European Union and that the total value of these services and of the intra-Community distance sales of goods carried out by this taxable person has not exceeded, during the calendar year in progress at the time of the service or of the intra-Community distance sales of goods and during the previous calendar year, the threshold of €10,000 excluding value added tax.
When, in the course of a calendar year, the threshold referred to in the first paragraph of this 1 is exceeded, the provisions of this 1 cease to apply to services provided from the day on which this threshold is exceeded.
2. However, this taxable person may opt for the place of supply of these services to non-taxable persons to be in the Member State in which these persons are established, have their permanent address or usually reside and for the place of supply of intra-Community distance sales of goods to be in the Member State to which the goods are dispatched or transported. This option covers a period of two calendar years and is renewable by tacit agreement, unless terminated at the end of each period.
