TLDR: Freelancers and sole proprietors in France must declare services invoiced to foreign clients, even if they are VAT-exempt. The rules vary depending on whether the client is in the EU or outside the EU. Declarations are made via the DES online service for EU clients and through accounting records for non-EU clients. Invoices must include specific mandatory details.
Declaration Obligations
Services invoiced to foreign clients must be declared, even if they are VAT-exempt. Declaration rules depend on the client's location (EU or non-EU) and the type of service (VATable or VAT-exempt).
VAT Identification Number
The individual VAT identification number must be included on invoices for transactions subject to VAT in France. This number is assigned to taxpayers carrying out transactions that entitle them to VAT deduction. Taxpayers not carrying out such transactions are exempt from this requirement.
Declaration Procedures
For EU clients, declarations are made via the DES online service, accessible on the douane.gouv.fr portal. For non-EU clients, exempt services must be recorded in accounting with client certifications and copies of invoices.
Mandatory Invoice Details
Invoices must include the following mandatory details:
- Name and address of the service provider and client
- VAT identification number of the service provider (if subject to VAT in France)
- Date and invoice number
- Detailed description of services rendered
- VAT exemption notice, if applicable
- For non-EU clients, the mention "VAT not applicable"
Deadlines and Corrections
The DES declaration for EU clients must be submitted quarterly, within one month of the end of the quarter. Corrections must be made promptly via an amended declaration on the same online service.
Errors and Adjustments
In case of VAT invoicing errors, a credit note must be issued to reverse the VAT, and an amended declaration must be submitted. Services used in France but invoiced to foreign clients are not considered French-source income if they relate to operations with foreign clients.
Thresholds and Specific Rules
The €10,000 threshold for services to non-taxable EU clients determines the application of French VAT rules. Below the threshold, the place of taxation is the client's EU Member State. Above the threshold, the place of taxation is France.