Reverse charge in France – when does the VAT reverse charge apply?
Reverse charge in France, or reverse charge (French: autoliquidation), means that VAT on a transaction is settled by the buyer or service recipient instead of the seller.
A Polish company can have a VAT registration in France and still issue a VAT-free invoice to a French customer. However, the place of taxation, the status of the seller and buyer, and the appropriate legal basis must first be determined.
Do I apply the reverse charge in France?
Answer four questions. The result provides guidance for further analysis, but it does not determine the tax classification of the transaction and does not cover all exceptions.
When does the buyer settle VAT?
The French term reverse charge (French: autoliquidation) appears in several cases, but each of them has a different basis and different conditions.
Local sale of a foreign company
In the case of a corresponding delivery in France by a seller not established in the country, VAT is settled by the buyer acting as a taxpayer and holding VAT in France. Detailed conditions are described in the official BOFiP explanation regarding the entity obliged to settle the tax.
B2B services
In the case of a typical B2B service provided by a company not established in France to a French taxpayer, VAT is settled by the service recipient.
Construction subcontracting
For qualified construction works related to real estate, VAT may be settled by the client who is a taxpayer.
WNT in France
The purchaser settles VAT on intra-Community acquisitions, but this is not a local reverse charge under Article 283(1).
Import VAT
The importer settles the import VAT in the ATVAI declaration. The rules are described separately in the guide on VAT imports in France.
Gold, Waste, Energy and Telecommunications
Selected industries have their own rules. The terms of one mechanism should not be transferred to all other transactions.
First qualification, then invoice
The term "B2B" or an active VIES number are not sufficient. The place of taxation, the role of the permanent establishment ( établissement stable), and the specific legal basis must be established.
Seller's FR VAT ≠ obligation to charge French VAT
A company can have a FR VAT number due to its own stock, intra-Community acquisition, import, B2C sales or supplies from France, and still remain a company not established in France.
The customer has VAT FR
The customer is a consumer
Example: PL company + FR VAT + FR warehouse → FR company with FR VAT
If a Polish company does not have a permanent establishment in France involved in the sale, Article 283(1) of the French Tax Code may transfer the obligation to settle VAT to the French buyer. A similar analysis is required for Amazon FBA in France, fulfillment, and 3PL warehouses.
Customer without VAT FR changes the result
Under the local mechanism of Article 283(1), the lack of a French VAT number for the buyer may mean that the foreign seller must calculate the TVA, report it in the declaration, and—depending on the overall model—conduct VAT registration in France. This relationship is also confirmed by the DGFiP's explanations for foreign companies.
How does the reverse charge work for B2B services?
In a typical B2B service, the place of taxation is the service recipient. If a Polish company provides a service to a French company, the French VAT is generally settled by the customer, as described in the DGFiP's explanations regarding services between taxpayers.
Real estate services
Don't automatically apply the general B2B rule. First, determine whether the property in France constitutes a French tax base, and only then determine who is liable for the tax.
Seller's VAT number
The lack of French VAT on the part of the Polish service provider does not preclude the reverse charge. In many standard B2B services, the customer settles the tax, so the service provider does not require French VAT solely for this reason. For transport, check separately the VAT on international transport in France. The carriage of goods and passengers and possible exemptions require a distinction before assessing the reverse charge.
How to issue an invoice using reverse charge?
If the customer settles VAT in accordance with the regulations, the seller does not report the French tax. The document should clearly indicate the reverse charge (French: "Autoliquidation").
VAT PL / VAT FR
VAT FR
| Description | Net | TVA | Value |
|---|---|---|---|
| Delivery subject to reverse charge | 10,000.00 EUR | — | 10,000.00 EUR |
Don't list TVA "for safety"
Under Article 283(3) of the CGI, a person who reports VAT on an invoice becomes liable for it from the mere fact of invoicing. An erroneous invoice with a 20% VAT rate doesn't invalidate the assumption that the customer will settle the reverse charge anyway—the document must be analyzed and properly corrected.
Does the reverse charge exempt from VAT registration in the Russian Federation?
Not always. It may eliminate the registration requirement based solely on a specific sale, but the company may also have other French obligations in parallel.
Own stock
The transfer of goods to France may result in the ITA of own goods and the need for VAT in France.
B2C Sales
Local sales to consumers are generally not transferred to the buyer in a B2B mechanism.
IDT or export
Deliveries originating from France may require French identification and reporting on CA3.
Import
Settling import VAT in the ATVAI system requires the correct number and declaration.
One model can combine different results
B2B sales from warehouse to customer with VAT FR may be subject to the reverse charge, while ICT of own goods and sales to consumers may still require registration and VAT declaration in France.
When is reverse charge used in construction?
Article 283 § 2 of the CGI nonies covers qualified construction work related to real estate, performed by a subcontractor on behalf of a client who is a taxpayer. The BOFiP clarifications of September 9, 2026, clarified the scope of many mixed works and contracts. We compare the settlement of work for the investor, subcontracting, and materials in more detail in the guide " Construction Services in France and VAT.
✓May be subject to
- Construction, repair, renovation and demolition
- Electricity, water, gas and telecommunications networks
- Installation of elements permanently attached to the building
- Built-in security systems
- Waterproofing works and selected engineering works
!Not automatically
- Separate design and engineering services
- Production of moving materials and elements
- Construction equipment rental only
- Only adjustment and commissioning of devices
- Separate cleaning unrelated to construction work
One global contract
If the works covered by the mechanism and the services that would separately be outside it form one global service in one subcontract, the whole may be subject to the reverse charge.
Separate contracts
If services are provided under separate contracts, each maintains its own VAT regime. The structure of the contract therefore directly impacts the invoicing method.
Exception: subjective exemption
If the subcontractor benefits from the French franchise en base de TVAand has not opted for taxation, the construction mechanism does not apply. The document should include information specific to this exemption, not a note about the reverse charge.
How does the buyer settle VAT?
The buyer calculates the French VAT at the appropriate rate for the transaction, records it as output and, if he has a full right of deduction, can record the same amount as input VAT.
The calculator does not determine whether a transaction qualifies for the reverse charge. The 5% figure is merely illustrative of the penalty provided for in Article 1788A of the CGI and does not imply that it is the only possible consequence for every error.
Economic neutrality does not exempt you from declaring
If a taxpayer is required to report the reverse charge and is entitled to deduct the same amount, failure to report the tax may result in a penalty equal to 5% of the deductible amount. For €20,000 of unreported VAT, the illustrative value is €1,000.
From 2027, the reverse charge is also a question of e-reporting
From September 1, 2027, foreign companies without a permanent establishment in France, acting as purchasers or service recipients required to settle VAT, will be subject to appropriate e-reporting regardless of company size. The deadline and scope for this group are confirmed by DGFiP in its information on e-reporting for foreign companies.
Invoice
Check which party is issuing the document and what annotation it should contain.
CA3 Declaration
Determine who reports the basis and tax and whether a deduction is available.
E-reporting
Verify the role of the buyer and the date of entry into force of data reporting obligations.
Not every transaction goes to the French e-invoice
The scope of the reform depends on, among other things, the status of the parties and the type of transaction. The full timeline and rules are described in the E-invoicing in France 2026-2027.
Reverse charge in France – examples
The same entrepreneur may execute transactions settled in several different ways in one month.
Local B2B sales
PL company not established in France, FR stock, FR VAT customer: possible mandatory reverse charge on the buyer's side.
Local B2C sales
Same stock sold to French consumer: seller essentially accounts for French VAT.
Marketing service
Polish agency for a French company: in a typical B2B service, VAT is settled by the service recipient.
Subcontractor on construction site
Qualified work in France: you must check article 283 2 nonies and the scope of the subcontract.
Moving your own stock
The PL → FR transfer is not a local sale under Article 283 paragraph 1. On the French side, the ITC of own goods is analyzed.
The most common mistakes made by foreign companies
The most costly mistakes result from simplifications: identifying the VAT number with the establishment or treating each B2B sale as a single mechanism.
"I have VAT FR, so I add TVA"
Not always. The VAT number does not determine the status of the entity or the entity liable.
"Every B2B is a reverse charge"
No. First, you must determine the place of taxation and the appropriate legal basis.
"The client's company is enough"
Under Article 283(1), the buyer's French VAT identification is crucial. It's worth checking the number with VIES, but a positive result alone doesn't settle the entire analysis.
“It's just a 0% rate”
No. The tax exists, but it is settled by a different party to the transaction. This is a different structure than taxation at a 0% rate.
"FR VAT is not needed"
It may be needed for other reasons: WNT, import, own stock or B2C sales.
"We'll charge VAT just in case"
Incorrectly stated VAT may become due simply by being included on an invoice.
"We do not declare a neutral transaction"
Failure to declare the amount due may lead to sanctions even with full right of deduction.
"All the mechanisms are the same"
Local sales, services, construction, WNT and ATVAI have different bases and conditions.
Reverse charge in France – checklist
Answer one question at a time. Skipping the first few questions usually leads to incorrect invoices and declarations.
- Where is a given supply or service taxed?
- Is the seller established in France?
- Is his permanent establishment involved in the transaction?
- Is the client acting as a taxpayer?
- Does the client have an active FR VAT number?
- Does Article 283 paragraph 1 or paragraph 2 of the CGI apply?
- Is this qualified construction subcontracting?
- Should the invoice include TVA or reverse charge notice?
- Who and in which field reports the transaction in CA3?
- Does the seller still need VAT FR for other reasons?
- Is the transaction subject to e-reporting?
- Has the contractor's status and number been documented?
Not sure who should settle French VAT?
We'll analyze the tax base, company and buyer status, French VAT number, and reverse charge basis. We'll then align invoicing with the appropriate declaration and other obligations in France.
FAQ – Reverse charge in France
Short answers about VAT FR, invoices, services, construction and declarations.
What does reverse charge mean in France?
This is a reverse charge (French: autoliquidation), in which the VAT on the transaction is settled by the buyer or service recipient instead of the seller.
Can a Polish company issue an invoice without VAT to a French company?
Yes, if, in accordance with French VAT regulations, the buyer settles the VAT. B2B status alone is not sufficient—the place of taxation, the status of the parties, and the specific mechanism must be verified.
Can a Polish company with VAT FR apply the reverse charge?
Yes. A French VAT number alone does not mean that the business is established in France. With appropriate local B2B sales, the customer may be able to settle the tax using French VAT.
Does a French customer need to have VAT FR?
For the local reverse charge under Article 283(1), the French VAT number of the purchaser is one of the key conditions.
What to enter on the invoice?
If the VAT is settled by the customer, the document should not show the TVA payable by the seller and should include the appropriate reverse charge note (French: "Autoliquidation").
Does reverse charge mean a 0% rate?
No. VAT is due, but it is the buyer's responsibility to settle it. This is not a sale taxed at the 0% rate.
Does reverse charge mean I don't need VAT FR?
Not always. You may need a VAT number for other reasons, such as your own stock, ITC, import, or local B2C sales.
Does the reverse charge apply to B2B services from Poland to France?
For typical services covered by the general B2B rule, the French service recipient generally accounts for French VAT.
Is every construction service subject to the reverse charge?
No. The nature of the work, the connection to the property, and the existence of subcontracting are all important factors. Separate design, equipment rental alone, or exclusive commissioning of equipment may be outside the scope of this mechanism.
Is it necessary to declare a transaction when VAT is neutral?
Yes. The right to deduct VAT does not exempt you from reporting output VAT. Failure to report it may result in penalties.
Expand your billing model in France
Each guide is responsible for a separate step: registration, document, declaration, import, warehouse or digital reporting.
This material is for informational purposes only and does not replace analysis of a specific transaction. The legal basis is as described in the article; before implementing a solution, it is important to verify the current legal status and the role of all entities.
