France has issued VAT guidance for dropshipping without IOSS, clarifying seller and customer liability under Article 293 A of the French General Tax Code (CGI). Non-EU merchants must appoint a fiscal representative, with VAT offsets allowed only after a tax audit under Article L. 80‑0 A.
France’s tax authorities have issued guidance on value-added tax (VAT) for dropshipping transactions where merchants sell goods online to consumers in France or other EU Member States without holding inventory and have not opted into the VAT “Import One Stop Shop” (IOSS) scheme.
The ruling outlines how VAT must be declared and paid, depending on how goods enter the European Union. For goods imported into the EU via France but shipped to other Member States, parcels under EUR150 are not taxable in France, with customs clearance required in the destination country. Parcels over EUR150 make the seller liable for VAT on imports conducted in France.
For goods imported into France for French consumers, VAT liability may fall either on the end customer or the seller. Customers are liable when conditions in Article 293 A, 2°-2-c of the French General Tax Code (CGI) are met, including that the sale is not made via an electronic interface and the seller has not registered for IOSS. If the taxable base differs from the standard French distance-sale rules, the seller becomes responsible for both import VAT and VAT on the sale itself.
Non-EU merchants liable for VAT in France must appoint a fiscal representative unless a mutual assistance agreement exists with their country. VAT already paid cannot be offset when filing returns unless confirmed through a tax audit under Article L. 80-0 A of the French Tax Procedures Code.
This clarification provides merchants with precise procedures for handling VAT on cross-border dropshipping and ensures compliance with French and EU tax law.
