French was one of the first countries in the world to introduce VAT, which like China, is a tax on value added generated in the course of economic activities and paid by consumer.
The main French VAT rates are as follow：
- The general tax rate is 20%
This tax rate applies to most goods and services and is the rare currently applied to the vast majority of cross-border e-commerce in France.
- Two special low tax rates: 10% and 5.5%
10% rate applies to the civil transport, accommodation and furnished houses for rent as well as category campground, catering, cinemas, museums, zoos, cultural classics and exhibitions.
5.5% rate applies to the foodstuffs, land for low-cost housing, social housing for the disabled, equipment and services, natural gas power, clean energy heating, publications, shows and some improvements to houses.
- 1% for specific concessions
This tax rate applies to drugs reimbursable for social welfare, processed meat sold to non-taxable persons, television tax, some shows, etc.
The VAT rate in the French Overseas Departments is different from that in metropolitan France.
How do cross-border sellers calculate the French VAT?
The formula for French VAT is as follows (20% as an example and there are no other factors such as deductions):
If your monthly sales in France are 1200 €, then 200 € of the 1200 € is VAT which you should pay to the French tax authorities.
If you need professional VAT representative in France, please feel free to contact European Tax and Administrative Service (ETAS)
