Intra-community VAT: All you need to know

What is intra-community VAT?

Definition

La Intra-community VAT is the value added tax applied to commercial transactions between companies subject to VAT located in different countries of the European Union. Unlike national VAT, it follows specific rules based on the place of destination of the goods and the status of the customer.

Difference with national VAT

Applicable VAT rates

The applicable VAT rate is that of country of destination (France):

• Normal rate : 20%
• Reduced rate : 10% (catering, some services)
• Super-reduced rate : 5.5% (books, newspapers, some foods)
• Special rate : 2.1% (medications, newspapers)

Practical cases

Example 1 : You buy goods from a German company for €10,000 excluding VAT.

• Applicable VAT: 20% (French rate) = 2,000€
• You are liable for this VAT
• You declare it in your DEB

Example 2 : You buy books from a Spanish company for €5,000 excluding VAT.

• Applicable VAT: 5.5% (French reduced rate) = €275
• You are liable for this VAT
• You declare it in your DEB

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Who is concerned?

You are affected by intra-community VAT if you:

• Buy goods from a company established in another EU country
• Sell goods to a company based in another EU country
• Are you subject to VAT in France
• Do you have an intra-community VAT number

Intra-community acquisitions

Definition and VAT regime

One Intra-community acquisition (AIC) corresponds to the purchase of goods shipped from another EU Member State to France, in the context of a relationship between two taxable companies (B2B).

The principle of reverse charge:

• The transaction is exempt from VAT in the country of departure.
• VAT is payable in France (country of destination).
• Key rule: It is the French purchaser who collects and deducts VAT simultaneously on his own declaration. The transaction is therefore financially neutral (VAT to be paid = deductible VAT), but the reporting obligation is strict.

‍Key rule : The intra-community acquisition is subject to VAT in the country of destination (France), and it is thepurchaser who is liable, not the seller.

Reporting obligations: Make way for EMEBI

Since the January 1, 2022, the “Declaration of Exchange of Goods” (DEB) has been abolished and divided into two separate formalities to comply with the European EBS (European Business Statistics) regulation.

For a Acquisition (introduction of goods in France), here are the new rules:

A. Statistical component: EMEBI (Monthly Statistical Survey on Intra-European Trade in Goods)

Unlike the old DEB, this statement is no longer systematic for everyone.

• Who is concerned? Businesses only requested by INSEE with the help of Customs. You should only complete the survey if you have received a “Notice letter” (notice of liability) from Customs.
• Obligation: If you are selected (“in the sample”), the survey response is obligatory, even for a month without an operation (“Nil” statement).

B. Tax component: The VAT Declaration (CA3)

‍For acquisitions, the fiscal component (the VAT Summary Statement) does not generally apply (it mainly concerns sales/deliveries).

Your obligation: You simply have to report the amount of your acquisitions on your monthly or quarterly VAT return (Line B2 “Intra-community acquisitions” and Line 08 or 09 for deductible VAT).

Applicable VAT rates

The applicable VAT rate is that of country of destination (France here in our example):

• Normal rate : 20%
• Reduced rate : 10% (catering, some services)
• Super-reduced rate : 5.5% (books, newspapers, some foods)
• Special rate : 2.1% (medications, newspapers)

Practical cases

Example 1 : You buy goods from a German company that ships goods from a Member State to France for €10,000 excluding VAT.

• Applicable VAT: 20% (French rate) = 2,000€
• You are liable for this VAT
• You declare it in your DEB

Example 2 : You buy books from a Spanish company that shipped books from its headquarters for €5,000 excluding VAT.

• Applicable VAT: 5.5% (French reduced rate) = €275
• You are liable for this VAT
• You declare it in your DEB

Intra-community deliveries

Exemption from VAT

An intra-community delivery (sale of goods shipped from France to another country in the EU) is Exempt from VAT in France.

• Mechanism: You charge Excluding tax (excl. VAT). Your customer (taxable company) will automatically pay VAT in their country of destination.
• Cash flow advantage: Although you do not collect VAT on the sale, you still have the right to deduct VAT on your own purchases related to this sale.

Requirements

To benefit from the exemption, you must:

1. Selling to a business subject to VAT (not to a consumer)
2. Have the intra-community VAT number of your customer
3. Verify that this number is validates (via VIES)
4. Deliver the goods to another Member State
5. Keep receipts of delivery

Mandatory documentation

You need to archive the following items:

• 📄 The “Excluding Tax” Invoice: it must include:
  • Your intra-community VAT number.
  • The intra-community VAT number of the shopper (valid).
  • The legal notice: “Exemption from VAT, article 262 ter, I of the CGI” (or “Article 138 of Directive 2006/112/EC”).
• 📋 The VAT Summary Statement
  • Proof of filing this declaration (mandatory from the 1st euro). The absence of this deposit may cause the exemption to be cancelled.
• 📊 EMEBI (on request)
  • Only if you have received the Customs notification letter (Response to the statistical survey).

Customer VAT number

Before invoicing without VAT, Always check your customer's VAT number:

• Use the VIES (VAT Information Exchange System) service
• Verify that the number is active and valid
• Keep the proof of verification

Online check

You can check an intra-community VAT number via:

• LIVES (VAT Information Exchange System): https://ec.europa.eu/taxation_customs/vies/
• Tax Department : https://www.impots.gouv.fr/
• Online tools : Cyplom VAT Checker (free)

4. FAQ - Frequently asked questions about intra-community VAT

Q1: What is the applicable VAT rate?

For a delivery (B2B sales) : 0% (Exemption), if the conditions are met.For a acquisition (B2B purchase) : You must Autoliquidate French VAT (Rate in force, ex: 20%). You collect and deduct it on the same CA3 return.

Q2: How do I verify an intra-community VAT number?

It is a crucial step. Use the official service VIES of the European Commission.

‍Tip: Print/save the proof of validity on the billing day.

Q3: I am a micro-entrepreneur, am I concerned?

Yes and no.

• Sales of goods: If you sell to professionals in the EU, you must request an intra-VAT number and complete the Summary Statement (from €1).
• Purchases of goods: If you are buying for more than €10,000/year In the EU, you must apply for an intra VAT number and pay French VAT to taxes. Below that, you pay VAT from the country of origin to the seller.

Q4: I forgot to report a month, what should I do?

Regularize spontaneously on the Douane.Gouv.fr portal. The administration is more lenient in the event of voluntary correction (right to error) than in the event of an inspection.

Q5: What happens if the customer number is invalid?

Exemption is on the rise! You must rebill your customer with the French VAT (20%). This is a costly mistake that makes you liable for tax to the French tax authorities.

Do you need tax support?

The management of EMEBI and intra-community VAT does not allow any approximation. A simple nomenclature code error or a declarative delay can trigger a check.

Our tax experts assist you in:

• ✅ Audit your intra-community flows and your compliance.
• ✅ Manage your declarations (Summary Report and EMEBI).
• ✅ Secure your proof of transport (mandatory since 2020).
• ✅ Respond to requests from the Customs Administration.

👉 Contact us for a free exchange

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