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Software Sales Tax in France 🇫🇷

How do I solve my tax liability?
Agony Rating
Sales Tax Rate
Taxable Goods
Highest Penalty

How likely am I to get caught for owing sales tax in France?

Very likely, if you’re a B2C business.

What is the sales tax threshold in France?

Based outside of France: €0, you’re liable as soon as you sell to customers in France. Based in France: Sales exceeding €33,200 a year.

Is SaaS taxable in France?

Yes. You owe tax for the sale of cloud software subscriptions to customers in France.

Are software downloads taxable in France?

Yes. You owe tax for the sale of software downloads to customers in France.

Are eBooks taxable in France?

Yes. You owe tax for the sale of eBooks to customers in France.

Are digital downloads taxable in France?

Yes. You owe tax for the sale of digital downloads to customers in France.

Registering for VAT in France

😐🌶️ It's not that complicated

If your business has a physical presence in France, you only need to register for sales tax if your sales exceed €33,200 a year. If you sell software to customers in France but your business is based elsewhere, you’ll need to register for VAT right away. 

If you sell into more countries across the EU, and your sales exceed €10,000 a year, you can register for the VAT MOSS system.

Filing & Remittance of VAT in France

😐🌶️ It's not that complicated

Filing frequency: Quarterly

The process for filing and remitting sales tax payments in France is straightforward. 

However, if you serve business customers in France and other EU member states under the VAT MOSS system, it does come with quite a bit of admin. 

In this instance, you’ll need to complete a separate filing called the EC Sales List. This is so you can document and report all of your sales to VAT-registered customers in one go.

Penalties for VAT non-compliance in France

😐🌶️ It stacks up

Non-compliance with tax regulations in France can result in interest, fines, and additional penalties, similar to those in other EU member states. 

If you sell to additional countries in the EU, under the VAT MOSS system, you can be excluded if you’re late or fail to submit your returns for three consecutive quarters. This would mean you then have to register, file and remit your sales taxes in each individual member state.

Had enough yet? There's more…

How to become sales tax compliant globally 🗺

Three Routes to Compliance for SaaS Executives

SaaS executives have a choice of three routes to global tax compliance. Get the guide to walk through the options for your team.

Download the guide »

Don't Worry, Ask Hugo

As CFO of Paddle, Hugo's finance team manages global tax compliance for $100M's of ARR from over 2,000 software businesses. Ask your questions in our live webinar.

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How can Paddle help?

Paddle can take all your responsibility & liability for sales tax off-your hands. Our global entities, finance team, and $160k+ year spend on agents, tooling, and accountants is ready for you.

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