Selling through an online marketplace does not always take VAT off your plate. Since 1 July 2021, the platform is in some cases treated as having bought and resold the goods itself, so it is the platform, not the seller, that owes the VAT on the sale to the end consumer.
For a European business, the practical question is therefore: for which sales am I liable, and what is left for me to do, including VAT registration in France for a foreign company? Here are the essentials.
The principle: the platform as “deemed supplier”
For the situations covered by the e-commerce VAT reform, the law creates a fiction: the platform that facilitates the sale is treated as having acquired and then supplied the goods itself. The sale between the seller and the platform is handled as a supply in its own right, and it is the platform’s sale to the consumer that bears the VAT.
When the platform is liable
Sellers established outside the European Union
Where goods located in the EU are sold to an EU consumer by a non-EU seller through the platform, the platform is the deemed supplier. The seller then does not charge VAT to the consumer, but its obligations towards the platform and the country where the goods sit still need to be reviewed.
Low-value imports
For goods shipped from a non-EU country with an intrinsic value of up to €150 per consignment and sold to an EU consumer, the platform may report the VAT through the Import One-Stop Shop (IOSS). Above €150, the standard import regime applies.
| Situation | Who owes VAT on the sale to the consumer | Note |
|---|---|---|
| Non-EU seller, goods in the EU | Platform | Seller-to-platform sale treated as a separate supply |
| Import up to €150 to an EU consumer | Platform (IOSS possible) | Standard import regime above €150 |
| EU seller, goods in the EU, sale to a consumer | Seller | OSS available for distance sales between Member States |
| Sale to a business | Seller | Intra-EU supply or reverse-charge rules apply |
When your obligations remain
- You are established in the EU and sell goods located in the EU: you remain liable for VAT on consumer sales, including through the OSS.
- You sell to businesses: intra-EU supply or reverse-charge rules apply.
- You hold stock in another country: local VAT registration obligations remain.
Even where the platform is liable, your own sales to the platform, your invoices and your records are still subject to rules. Where your goods are located and the place of supply should therefore be checked flow by flow.
VAT registration in France and the VAT agent
As soon as your goods are stored in France, or you carry out taxable transactions there, a French VAT number may be needed. Registration allows you to file VAT returns and, where relevant, to recover deductible VAT.
Many sellers use a French VAT agent: a firm that acts under a mandate to carry out these formalities. This should not be confused with a fiscal representative in France, a separate concept whose requirement depends on where the business is established and on the nature of its transactions.
Points of attention
- Gaps between platform reports and your accounts.
- Customer status (consumer or business) wrongly identified.
- Goods moved to a warehouse in another country without tracking the movements.
Good habits to adopt
How Hanoutax can help
Hanoutax acts as a VAT agent (mandataire fiscal), not as a fiscal representative: the firm reviews how your online sales are treated, handles your VAT registration in France and your filings, and manages your OSS and IOSS One-Stop Shop returns. For a first overview, try our quick check.
FAQ
Who owes VAT when I sell on a marketplace?
It depends on the flow. The platform is liable when it is the deemed supplier, for example for a non-EU seller or a low-value import. In other cases, notably an EU-established seller selling goods located in the EU, the VAT remains due by the seller.
What does the €150 threshold cover?
It applies to goods shipped from a non-EU country with an intrinsic value of up to €150 per consignment. The platform may then report VAT through the Import One-Stop Shop (IOSS). Above that amount, the standard import regime applies, with different rules.
Do I still need to register for VAT in France?
Not necessarily in every case, but it is often useful once you hold stock in France or make taxable sales there. It depends on your flows and where you are established, so a review of your situation is recommended.
Does the OSS replace my French VAT return?
No. The OSS lets you report certain distance sales of goods to consumers in other Member States. It does not cover sales made in the country where the stock is held, or deductible VAT on your purchases, which fall under local returns.
What is the difference between a VAT agent and a fiscal representative?
A fiscal representative is a specific legal concept, and the requirement depends on the business’s situation. A VAT agent acts under a mandate to carry out your formalities and filings. Hanoutax acts as a VAT agent (mandataire fiscal).
Unsure about the VAT on your online sales?
Related reading
Informational content, not legal advice. The rules that apply depend on your situation.
