France Cracks down on VAT Fraud on e-commerce
In a bid to further their clamp down on digital tax and VAT fraud, the French VAT authorities have released further details about the obligation for online e-commerce businesses to provide extensive details about all French sales.
On the 7 January the French VAT authorities published Guidelines to follow Article 10 of the Law 2018-898. To summarise some of the key points:
Digital businesses (particularly those who act as a facilitator between the buyer and the seller), will have to provide each seller with information about their tax obligations on every activity.
The online platforms will also have to ensure there are easily accessible links that provide information on these tax obligations backed up by links to official tax authority websites.
Large multinational platforms, such as Amazon and eBay, will be subjected to an even more precise administrative burden. This is so that the French VAT authorities can have a transparent view of all digital business being conducted in France whether you’re a French business or not.
What does this mean for your business?
To put it bluntly, you really don’t want to be getting on France’s bad side this year. All digital and e-commerce businesses need to make sure that all their VAT efforts are 100% compliant. vatglobal is able to help you achieve this and navigate VAT registration and filing needs.