TLDR: The European Service Declaration (ESD) is a tax obligation for VAT-registered entities in France providing services to clients in other EU Member States when VAT is self-assessed by the client. It must be submitted from the first euro of service and only applies to services territorially located in the client's Member State under Article 44 of Directive 2006/112/EC.
Definition and Scope
The European Service Declaration (ESD) is a mandatory requirement for VAT-registered entities in France that provide services to clients established in other EU Member States, when VAT is self-assessed by the client under Article 196 of Directive 2006/112/EC. This declaration must be submitted from the first euro of service and applies only if the service is territorially located in the client's Member State under Article 44 of the same directive.
Who Must Declare?
The following VAT-registered entities established in France (excluding the Overseas Departments) must submit the ESD when providing services to:
- A VAT-registered client in another Member State, when the service is territorially located in the client's state.
- A non-VAT-registered entity (e.g., an individual) only if the client's Member State has exercised the option under Article 59-bis of Directive 2006/112/EC for self-assessment.
Entities benefiting from the VAT exemption scheme (Article 293 B of the French Tax Code, CGI) may submit the ESD on paper. Entities based in the Overseas Departments (DOM) or whose services are exempt in the client's Member State are not required to submit the ESD.
Submission Methods
The ESD can be submitted in two ways:
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Online, via the ESD e-service on the French Customs portal (
www.douane.gouv.fr), with two options:- Online entry (DTI module).
- XML file upload (DTI+ module).
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On paper, only for entities benefiting from the VAT exemption scheme, using CERFA form No. 13964, available on the Customs website.
The choice of paper format must be made for each individual declaration.
Required Information
The ESD must include the following details for each client:
- The client's VAT identification number in the destination Member State.
- The total ex-VAT amount of services (or down payments received) for which the client is liable for VAT.
- The reference period of the declaration.
- Provider details: identification number, company name, address.
For transactions in currencies other than the euro, the exchange rate to be used is the one published by the Banque de France (based on the ECB rate) on the date VAT becomes due in the client's Member State. Alternatively, the customs exchange rate may be used, provided it is applied uniformly to all intra-EU services for the year.
Deadlines and Corrections
The ESD must be submitted no later than the 10th working day of the month following the month in which VAT became due in the client's Member State or a commercial adjustment was notified to the client.
Corrections must be made promptly by submitting an amended declaration, except for omissions or inaccuracies identified after a six-year period from the date of the transaction. Failure to submit on time is subject to penalties under Article 1788 A of the CGI.
Exclusions and Limitations
The following must not be declared in the ESD:
- Services whose territoriality is not determined by Article 44 of Directive 2006/112/EC, even if self-assessed by the client on another basis.
- Services exempt in the client's Member State.
- Banking/financial services located in the client's state, unless that state provides an option for taxation similar to France's (Article 260 B of the CGI).
The ESD does not replace the recapitulative statement of clients (Article 289 B of the CGI), which remains mandatory for intra-EU goods supplies.