The French government recently proposed new measures to combat e-commerce VAT fraud within its draft budget for 2020…
The French government recently proposed new measures to combat e-commerce VAT fraud within its draft budget for 2020.
These new measures target fulfilment houses and online marketplaces, and by introducing these, it is hoped that they will prevent the loss of millions of euros worth of VAT due to fraud in the sector.
The new measures include the obligation for the fulfilment houses and online marketplaces to:
- Supply details of online sellers’ customers’ VAT information (including imports and taxable transactions) to the French tax authorities upon request.
- Maintain records of the online sellers’ transactions for a period of 10 years. If requested, this will help the tax authorities to verify that the VAT on their sales has been collected and remitted correctly.
The above changes are in addition to the jont and several liability provisions in article 283bis of the French Tax Code which can apply to certain marketplaces from 1 January 2020.