French General Tax Code
In force1. Any taxable person not established in the European Union who supplies services to a non-taxable person who is established in a Member State of the European Union, has his domicile or habitual residence there, may avail himself of the special scheme set out in this Article. This special scheme shall apply to all such services supplied in the European Union.
A taxable person not established in the European Union shall be deemed to be a taxable person who has not established the seat of his economic activity and does not have a fixed establishment within the territory of the European Union.
The Member State to which the taxable person not established within the European Union chooses to notify the moment when his activity as a taxable person within the territory of the European Union commences in accordance with the provisions of this Article shall be deemed to be the Member State of identification.
Member State of consumption means the Member State of the European Union in which, in accordance with Title V of Chapter 3 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, the supplies of services are deemed to take place.
2. He shall inform the administration when he starts his taxable activity, ceases it or modifies it to such an extent that he can no longer benefit from this special scheme. He shall provide this information and notify the administration of any changes by electronic means in accordance with the conditions laid down by decree.
3. The administration assigns and communicates to him electronically an individual identification number for the purposes of the application of this special scheme, the terms of which are laid down by decree.
4. The administration shall exclude him from this special scheme in the following cases:
a. If he notifies that he no longer provides services mentioned in 1;
b. Or if the administration can presume, by other means, that his taxable activities have ceased;
c. Or if he no longer fulfils the conditions necessary to be authorised to take advantage of this special scheme;
d. Or if he systematically fails to comply with the rules relating to this special scheme
The terms of such exclusion shall be laid down by decree.
5. For each calendar quarter, he shall file, by electronic means, a value added tax return, whether or not services covered by this special scheme have been supplied in respect of that period. The value added tax return includes the identification number mentioned in point 3 and, for each Member State of consumption in which the tax is due, the total value excluding value added tax of the services mentioned in point 1 for the taxable period and the total amount of the corresponding tax broken down by tax rate. The applicable tax rates and the total amount of tax due are also indicated. The details of this declaration are laid down by decree.
5 bis. Where it is necessary to make changes to the value added tax return after it has been submitted, these changes are included in a subsequent return, within three years of the date on which the initial return was required to be submitted in accordance with 5. This subsequent value added tax return shall specify the Member State of consumption concerned, the taxable period and the amount of value added tax for which amendments are necessary.
6. The value added tax return is denominated in euros.
7. He shall pay the value added tax, citing the value added tax return on which the tax is assessed, when he files his return, no later than the expiry of the period within which the return must be filed. Payment is made to a bank account denominated in euros.
8. A taxable person who, in another Member State, avails himself of the special scheme provided for in Section 2 of Chapter 6 of Title XII of the aforementioned Council Directive 2006/112/EC of 28 November 2006 may not, in respect of his taxable activities covered by this special scheme, deduct any amount of value added tax in France. The tax relating to the supply of goods and services covered by this scheme is reimbursed in accordance with the procedures set out in d of V of Article 271 of this code.
8 bis. Notwithstanding the provisions of 8 of this Article, if a taxable person who, in another Member State, avails himself of the special scheme provided for in Section 2 of Chapter 6 of Title XII of the aforementioned Council Directive 2006/112/EC of 28 November 2006 is required to be identified in France for activities not covered by this special scheme, he shall deduct the value added tax relating to the goods and services used for the purposes of his taxable transactions covered by this special scheme in accordance with Article 271 of this Code.
9. He keeps a register of operations covered by this special scheme. This register must, on request, be made available electronically to the administrations of the Member State of identification and the Member State of consumption. It shall be sufficiently detailed to enable the administration of the Member State of consumption to verify the accuracy of the value added tax return referred to in 5 of this article under the conditions determined by decree.
The register shall be kept for ten years from 31 December of the year of the transaction.
10. The provisions of article 289 A do not apply to taxable persons not established in the European Union and covered by this special scheme.
