France proposes new online marketplaces VAT fraud obligations

18 November 2019

The French government recently proposed new measures to combat e-commerce VAT fraud within its draft budget for 2020.

These new measures target fulfilment houses and online marketplaces, and by introducing these, it is hoped that they will prevent the loss of millions of euros worth of VAT due to fraud in the sector.

The new measures include the obligation for the fulfilment houses and online marketplaces to:

  • Supply details of online seller customers’ VAT information (including imports and taxable transactions) to the French tax authorities upon request.
  • Maintain records of the online sellers’ transactions for a period of 10 years. If requested, this will help the tax authorities to verify that the VAT on their sales has been collected and remitted correctly.
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