Many European sellers store their products in warehouses across several countries to speed up delivery, for example through the fulfilment programmes of the large marketplaces. As soon as stock sits in France, VAT obligations arise, even if you have no office or employees there.
Do you need a French VAT number? How are sales made from that stock reported? This article answers those questions for companies considering VAT registration in France as a foreign business.
Transferring your own goods
When you send your own goods from another Member State to a warehouse in France, the movement is treated as a transfer between your own stocks. It is regarded as a supply in the country of departure and an acquisition in the country of arrival. You therefore need a French VAT number to report the acquisition.
Sales made from stock in France
The treatment depends on the destination and the customer:
| Type of sale | VAT treatment | Where to report |
|---|---|---|
| Consumer in France | French VAT applies | French VAT return |
| Consumer in another Member State | Intra-EU distance sale | One-Stop Shop (OSS), subject to conditions |
| Business customer (B2B) | Rules specific to sales between businesses | VAT returns and recapitulative statements, as relevant |
The precise rules depend on the nature of the goods, the customer’s status and where you are established, so they are checked flow by flow. See also our page on place of supply and tax point.
The One-Stop Shop trap
In practice, a seller shipping from a French warehouse to customers in France and Germany reports the former in its French VAT return and the latter, subject to conditions, through the One-Stop Shop. Mixing the two means reporting in the wrong place.
Other obligations
- Periodic VAT returns in France, even for months without sales.
- Reporting obligations linked to trade in goods between countries (see the VAT recapitulative statement and EMEBI and DES).
- Keeping a register of transfers and retaining supporting documents.
- Invoicing in line with French rules for sales taxable in France.
A VAT agent to manage stock in France
Many foreign businesses entrust their registration and filings to a French VAT agent. It gives you a local point of contact for tax authority mail and the filing calendar. Depending on where you are established, a fiscal representative in France may also be required: this is a separate concept that needs to be checked.
How Hanoutax can help
Hanoutax acts as a VAT agent (mandataire fiscal), not as a fiscal representative: the firm handles your VAT registration in France and your periodic returns, and helps you qualify your logistics flows. You can start with our quick check.
FAQ
Do I need a French VAT number if I store goods in France?
In principle, yes: sending your own goods to a warehouse in France is treated as an acquisition in the country of arrival, which must be reported. Sellers using marketplace fulfilment programmes are concerned. A review of your situation is still recommended.
Is the OSS enough for my sales from stock in France?
No. The OSS does not cover sales made in the country where the stock is located. Sales to French customers from stock in France go in the French VAT return. The OSS may however apply to your distance sales to other Member States.
Do I need to file a VAT return for a month with no sales?
In principle, yes: periodic returns are generally due even in months without transactions. A missing return may be penalised. The frequency depends on your VAT regime.
Which supporting documents should I keep?
It is prudent to keep a register of goods transfers, transport documents, invoices and reports from the logistics provider. These help justify how transactions were classified in the event of an audit.
Can a VAT agent handle my returns?
Yes. A VAT agent acts under a mandate to carry out the registration and file VAT returns. Hanoutax acts in that capacity, which is distinct from the fiscal representative required by law in certain situations.
Stock in France? Review your position with Hanoutax
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Informational content, not legal advice. The rules that apply depend on your situation.
