Changes to Distance Selling Thresholds in France?

Included in the French Budget Bill for 2016 was a proposal to decrease the distance selling threshold currently in place from EUR 100000 to EUR 35000 as of 1st January 2016 in order “to avoid distortions of competitions between established businesses in France and businesses established in the EU”.

This proposed change will affect any e-commerce business making supplies in France. These businesses will therefore have to monitor their sales carefully to ensure that, if the threshold is exceeded, they register for VAT in accordance with their VAT responsibilities.

If it is decided that it is cost effective to collect VAT in relation to this lower threshold, other EU Member States may decide to follow suit and therefore if you are a trader involved in distance selling to other EU Member States and are unsure where this would leave your business, seek advice today via our free helpline.

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