French Finance Bill 2024 introduces new VAT measures

Finance Bill for 2024 introduces several new VAT measures into the French tax law. Among these measures, we can highlight the following:

1. Introduction of a new distinction between hotels and similar activities on one hand, and activities in the residential housing sector (student residences, retirement homes, etc.) on the other hand.
2. The entry into force of e-invoicing in France being deferred until 1 September 2026. The implementation was initially scheduled for 1 of July 2024.
3. Starting 1 January 2025, services and ancillary services related to cultural, artistic, sporting, scientific, educational, entertainment or similar online events are excluded from the scope of the French VAT if the recipient is established outside of France.
4. The rules for e-commerce related to the VAT taxable person and the scope of French VAT are modified in the context of drop shipping activities.

Key takeaway

For further information on the provisions presented above and their consequences, please refer to the following tax alert.

Reference: Finance Bill for 2024 – Tax alert – DLA Paris