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New Electronic Payment Rules For VAT In France

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New Electronic Payment Rules For VAT In France

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Local and foreign companies in France will soon be required by law to pay VAT by direct debit

From 28 October 2015 it will be compulsory for French companies to pay VAT by direct debit. The same rule applies to foreign companies (where they have a non-resident VAT registration in France) as of 1 December.

The penalty for not complying with the new rule will be a fine of 60 euros for each offence.

Banks will be taking the amount directly from company bank accounts on or after the 20th of each month/quarter, so it is necessary to make the appropriate account arrangements in advance.

It is important for companies to note that a French bank account is not required to fulfill the VAT payment obligation; alternative bank account information, including Swift and IBAN, can be provided.

If you have questions or need help to meet the compliance requirements, you can contact our VAT team here.


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