TLDR: Digital platform operators not established in France are subject to reporting obligations if their users reside in France or carry out sales or service transactions in France under the VAT territoriality rules. They must register, provide tax information to users, and report transactions carried out from 1 January 2023, subject to specific exceptions.
Scope of the obligations
The reporting obligations provided for in Article 242 bis of the French Tax Code (CGI) apply to all platforms that connect individuals electronically, regardless of their place of establishment. They concern operators with users residing in France or carrying out transactions subject to VAT in France under the territoriality rules (Articles 258 to 259 D of the CGI).
Non-French-established operators are also required to report if they facilitate transactions for individuals tax-resident in an EU Member State or, for the rental of immovable property, relating to property located in an EU Member State, and choose to fulfil their reporting obligations in France.
Registration and identification
Foreign operators must register and provide:
- the individual identification number assigned by the Member State for registration under the non-EU OSS regime;
- the VAT identification number of the country where the platform has registered with the One-Stop Shop (OSS) for VAT;
- the States or territories of tax residence of the sellers and service providers to be reported.
Information obligations towards users
Operators must provide, for each transaction, clear and transparent information on the tax and social security obligations incumbent on individuals carrying out commercial transactions via the platform. They must also provide an electronic link to the websites of the competent authorities (e.g. impots.gouv.fr for tax obligations, urssaf.fr for social security obligations).
Deadlines and reporting methods
The reporting obligations apply to transactions carried out from 1 January 2023 and must be reported in 2024. Operators must fulfil their reporting obligations with the competent tax authority by 31 January of the year following the year of the reported transactions.
Exceptions and exemptions
Platform operators are not required to file the declaration provided for in Article 1649 ter A of the CGI if they already fulfil their reporting obligations in another EU Member State under Directive 2011/16/EU. Furthermore, certain categories of sellers or service providers are excluded from the reporting obligations, including:
- public entities;
- listed companies or entities linked to a listed company;
- entities for which more than 2,000 immovable property rental transactions have been facilitated on a single property during the reporting period;
- individuals who have carried out fewer than 30 sales transactions for a total amount not exceeding €2,000.
Legal framework and exchange of information
These obligations fall under DAC 7 Directive (2021/514/EU) and the OECD’s model rules for the digital economy. They aim to harmonise reporting and facilitate the automatic exchange of information between Member States, based on the residence of sellers or service providers or the location of immovable property.