VAT and France

The supply of certain services from a UK business to a customer who belongs in France is only outside the scope of UK VAT if it is being received (rather than just supplied) for business purposes. For example, if a UK online music store allows a French customer to download a music track, it is undoubtedly being supplied for business purposes by the UK business, but it is probably not being received for business purposes by the French customer.

It is therefore important for the UK business to ensure that the French customer is receiving the service for a business use, before agreeing a sale price that does not include UK VAT.

If the customer is registered for French VAT (called ‘Taxe sur la Valeur Ajoutée’, or ‘TVA’), then obtaining their TVA number is good evidence of business status. However, there may be reason to suspect that the service is still not for business purposes, in which case further verification would be needed.

If the customer claims to be in business but is not registered for French VAT, other verification is needed. This might include a commercial website, a business letterhead, any publicity material, or any documents from the French tax authorities.

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