How reverse charge (“autoliquidation”) works in France
Under French VAT rules, B2B services supplied to a VAT-registered customer in another EU country are taxed where the customer is established (Article 259-1 of the Code général des impôts). The French supplier therefore issues a 0% invoice and the customer self-accounts for the VAT in their own country — this is the reverse charge, known in French as autoliquidation. The invoice must state “TVA non applicable, art. 259-1 du CGI” and show the customer's valid EU VAT number.
For goods shipped to a VAT-registered customer in another EU country, the supply is an intra-Community supply exempt from French VAT, with the wording “Exonération de TVA – Livraison intracommunautaire, art. 262 ter, I du CGI”. France's standard VAT rate is 20%, with reduced rates of 10%, 5.5% and 2.1%. If the customer cannot provide a valid VAT number, they are treated as a non-taxable person and French VAT (normally 20%) must be charged.
From 1 September 2026, France is making B2B e-invoicing mandatory: invoices between French businesses must be exchanged electronically through approved platforms. The VAT wording rules themselves are unchanged — but the invoice must now travel through a compliant channel, and both supplier and customer remain responsible for archiving.
Frequently asked questions
When does French reverse charge apply?
For B2B services to VAT-registered customers in other EU countries (art. 259-1 du CGI), intra-Community supplies of goods (art. 262 ter, I du CGI), and certain domestic cases such as construction subcontracting (art. 283 du CGI). Standard domestic B2B sales within France are charged at 20% (or the applicable reduced rate).
What if my EU customer has no valid VAT number?
Treat them as a private individual: French VAT applies (normally 20%). Always validate the number — a format check is a first step, but confirm it on the EU's VIES system before applying 0%.
What is the correct invoice wording?
Services to EU businesses: “TVA non applicable, art. 259-1 du CGI – Autoliquidation”. Goods to EU businesses: “Exonération de TVA – Livraison intracommunautaire, art. 262 ter, I du CGI”. Exports outside the EU: “TVA non applicable – Exportation hors UE”.
Does 0% VAT mean the sale is VAT-free?
No — reverse charge only shifts who accounts for the tax. The customer declares the VAT in their own country and usually reclaims it at the same time.
What changes with e-invoicing from September 2026?
French businesses must be able to receive B2B e-invoices via an approved platform (plateforme agréée), with the issuing obligation phased in by company size. The VAT treatment and invoice wording stay the same.