Exchanges with countries inside the EU

*Supply of goods |  *Provision of a service

Principal applicable texts

  Article 256 of the general taxation code (CGI)
  European Directive n° 77/388 dated 17 May 1977, called the 6th directive concerning the harmonisation of VAT assessment rules.
  Directive dated 16 December 1991, establishing the regime to be applied to community operations.
  Law n° 92-677 dated 17 July 1992, implementing European directives in France.

Territoriality

Territories of the EU

France and the other fourteen member nations of the EU (Austria, Belgium, Denmark, Finland, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, United Kingdom).

French territory

  Metropolitan France (including Corsica), the Principality of Monaco.
  The overseas departments (DOM): Guadeloupe, Martinique, and Réunion.

From a taxation point of view, these three departments are considered as “export territories”2 in their relations with mainland France and “third party territories” in their relations with member states of the EU.

However, VAT is payable in these departments in accordance with the provisions of national legislation.

VAT does not apply to Guyana, or to the territorial administrations of Mayotte and Saint Pierre et Miquelon. Goods delivered in these territories (from mainland France or another EU member state), and the provision of services destined for them, are exempt from VAT.

(2) Export territories : the rules laid down apply to the fiscal relationships between mainland France and the departments concerned

(3) “Third party” territory = territories “outside the EU ”

More about:

  French law n°92-677, LEGIFRANCE web site
  French Article 256-0, LEGIFRANCE web site
  Council Directive n°91/680, JOCE (Euro Lex) site
  Council Directive n°77/388, JOCE (Euro Lex) site
  French Article 256, LEGIFRANCE web site

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