France Anti-Fraud Act 2020
After the United Kingdom in 2018 and Germany in 2019, it’s now France’s turn to introduce new legislation that tackles VAT fraud in the e-commerce industry.
Who is affected by this Act?
Marketplaces such as Amazon and eBay will be massively affected by this Act, they will need to provide clear, fair and transparent information on tax obligations and social responsibility of people who carry out commercial transactions on their marketplaces, according to France Anti-Fraud Act, Law n ° 2018-898 of 23 October 2018 on the fight against fraud (1). Furthermore, third-party sellers might be required to validate their VAT status on Amazon and provide a French VAT number if their situation requires to be VAT registered there.
Why and how to act
The main conditions that triggers the need to get VAT registered in France are the followings:
• Your distance-selling sales exceed the threshold of €35,000.
• You are storing goods in France (in your own warehouse or in Amazon Fulfilment Centers for example).
Contact our team today to find out whether you need to get VAT registered in France.
Consequences of not complying to this Act
A punishable and hefty global fixed fine, limited to a maximum of €50,000 will be charged if you don’t comply with the general tax code law provided in ‘point 1 of article 242 in the France Anti-Fraud Act 2020‘. Amazon may also decide to block your account to avoid being held accountable for your unpaid VAT.
Act first and act now
If you have any questions regarding the France Anti-Fraud Act 2020 and how you can get your VAT number in France and other countries, contact our team today! We will handle all the paperwork for you. Alternatively, find out whether you are eligible for free VAT registration and filings from one of Amazon’s VAT promotion.