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2010 VAT Package impacts on France

28 Jan 2010

The French Financial Bill for 2010 which incorporates French law European Directives 2008/8/EC and 2008/9/EC of 12 February 2008 has reformed the value added tax (VAT territoriality rules applicable to supplies of services within the European Union). Taxand France details the new VAT rules.

Pursuant to these directives:

  • VAT is payable in the customer's State, when the customer is a taxable person for VAT purposes
  • VAT is owed in the service provider's State, when the customer is not a taxable person for VAT purposes.

Moreover, with effect from 1 January 2010, an electronic procedure will be implemented for recovering VAT. This will accelerate such payments for the recovery of VAT.

Taxand's Take

Multinationals should review the new VAT rules and check the requirements to determine how it will affect businesses, therefore managing risk and avoiding potential penalties.

Your Taxand contact for further queries is:
Roland Schneider
T. +33 (0) 1 70 38 88 03

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