France is introducing a new VAT payment obligation for certain non-resident businesses.

From 1 December 2015, non-resident businesses registered for VAT in France with a foreign bank account held in the SEPA (Single Euro Payments Area) must pay VAT via an automatic online payment system; ‘direct debit’.  Businesses without a bank account located in the SEPA are not affected and should continue to make payments in the normal manner.

Affected businesses will be required to provide the French tax authorities their foreign bank account details and ensure the direct debit is set up by 1 December, 2015.  Although we understand there is an informal period of grace for business which are late to make arrangements, we would recommend acting as soon as possible to avoid future payment issues.

By |October 28th, 2015|