VAT and international invoicing from France: the definitive guide
EU or non-EU, B2B or B2C — VAT rules change dramatically depending on the case. Here's how to navigate this maze without fiscal risk.
A maze with real consequences
International invoicing from France is a minefield. VAT rules vary depending on the client's country, professional status, and the nature of the service. An error — even in good faith — can trigger a significant tax adjustment.
The three fundamental cases
International VAT rests on a matrix that appears simple but is formidable in practice.
Professional client within the European Union (intra-community B2B): VAT is reverse-charged by the client. Your invoice must be issued excluding VAT with the mention "Reverse charge mechanism — Art. 283-2 CGI" and the intra-community VAT numbers of both parties. Any error in the client's VAT number makes you liable for the tax.
Individual client within the European Union (B2C): French VAT applies at the standard rate. The invoice is identical to a domestic one. Note the One-Stop Shop (OSS) thresholds for goods sales, however.
Client outside the European Union: No VAT applies. The invoice must bear the mention "VAT exemption — Article 259-1 CGI" and be issued excluding tax.
Common pitfalls
The most frequent pitfall concerns intra-community VAT number verification. Invoicing excluding VAT to a European client whose number is invalid or non-existent exposes you to paying the VAT yourself. The European Commission's VIES system enables this verification, but few do it systematically.
Another trap: foreign currency invoicing. VAT (when applicable) must always be calculated in euros, even if the invoice is denominated in dollars or pounds. The applicable exchange rate is the one on the invoice date.
Automation as a safety net
International VAT errors aren't competence errors — they're process errors. No professional can memorize every possible combination of country, status, and service type.
A tool that automatically detects the client's country, verifies their status (B2B or B2C), applies the corresponding VAT rule, adds required legal mentions, and generates the invoice in the client's language eliminates these risks at the source.
That's precisely the difference between an invoicing tool and a true compliance tool.