Box F7 of the French VAT return: Important points to keep in mind

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General presentation of box F7

Entitled “Sales of goods or services made by a taxable person not established in France”, box F7 is intended for foreign companies registered for VAT in France, without being established there, who must declare taxable transactions carried out on French territory.

These operations fall under the reverse charge mechanism provided for in article 283-1 of the FTC, and concern flows where the customer is liable for VAT, not the supplier.

Details of the transactions concerned

1. Who is concerned?

Only the companies not established in France, that is to say:

• No permanent establishment in France (no human and material resources).
• But registered for VAT in France, because they carry out taxable transactions there.

⚠️ Important: Be registered for VAT in France does not mean to be established in France. They are two distinct legal concepts.

2. What transactions need to be reported?

The operations concerned fall under sales made from or to France, in which:

• The supplier is foreign (outside France),
• The customer is subject to VAT in France (he has a French VAT number),
• The goods are delivered in France or The services can be located in France.

Typical examples:

• An English company sells goods to a French company: the goods are shipped and delivered in France. The French customer must Auto-liquidate VAT (he declares the purchase in box B4) and the supplier declares the sale In box F7.
• A foreign company provides a provision of real estate services in France (for example, renovation work on a building located in France): it declares the HT base in F7.

The expert's point of view

Why is this box sensitive?

Risk No. 1: VAT incorrectly charged

Many foreign suppliers continue to charge Of the French VAT wrongly, while they should not have charged as part of the reverse charge mechanism. This exposes their customers to sanctions :

❌ Any VAT that is incorrectly charged is not not deductible.

This means that even if you paid this VAT to your supplier, the administration may refuse your right to deduct, and you will be forced to request a refund from your supplier, with no guarantee of success.

Risk #2: fraud regime

In extreme cases, if the administration considers that you Couldn't ignore that your supplier would not remit VAT, you can be held jointly and severally liable in a fraudulent operation (carousel fraud, etc.).

Best practices to adopt

• Reflex n° 1: in the presence of a foreign supplier → no VAT expected on the invoice.
• Reflex n° 2: if VAT is invoiced → check its legitimacy before payment.
• Reflex n° 3: identify well whether the supplier is established or not in France.

Practical cases

Sample statement

A British company (not established in France but registered for French VAT) sells goods to a French company. The goods are delivered departure and arrival in France. The amount of 44,000€ EXCL. VAT is then:

• Declared in box F7 by the seller.
• Declared in box B4 and box 20 by the customer (VAT collected and deducted via reverse charge).

Important points to keep in mind

• ✔️ Only non-established foreign companies are concerned by box F7.
• ✔️ Sales declared in F7 are excluding tax, because subject to reverse charge by the customer.
• ✔️ The customer must be subject to VAT in France.
• ❌ Do not charge VAT incorrectly : VAT incorrectly charged is not recoverable by the customer.
• ⚠️ Make a clear distinction between VAT registration and permanent establishment.
• ✔️ Services that can be located in France (in particular services related to buildings) are also concerned.

Conclusion

La Box F7 is essential to ensure the compliance of foreign companies operating on French territory without being established there. By understanding the transactions concerned and adopting the right reflexes, you limit your tax risks and those of your customers.

To find out more, check out our video dedicated to the case F7, and do not hesitate to contact us for any questions related to the VAT applied to your international flows.