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French VAT 20% — When does it apply for EU B2B customers?

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Updated

If you pick up your order in our French store OR have it delivered to a French address, French VAT 20% applies regardless of your registered country. If your order is delivered to your business address in another EU Member State, French VAT is not charged (VIES exemption applies).

Why French VAT applies on in-store pickup and French delivery

Even though you are a VAT-registered business in another EU Member State (with a valid VIES VAT number), French VAT 20% applies in two specific situations because the place of supply is France:

  1. In-store pickup at our store in Cambes (France) — the goods are handed over to you on French territory.
  2. Delivery to a French address (Mondial Relay pickup point in France, DPD France delivery, home address in France, etc.) — the goods are shipped within France.

In both cases, the transaction is considered a domestic French supply under EU and French tax law. The intra-community VAT exemption (VIES) does not apply — it only applies when goods are physically transported from one EU Member State to another.

Legal references

EU law — Directive 2006/112/EC

Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax

Full text on EUR-Lex: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32006L0112

Article 31 — Place of supply where goods are not dispatched or transported

“Where goods are not dispatched or transported, the place of supply shall be deemed to be the place where the goods are located at the time when the supply takes place.”

Applies to: in-store pickup at our Cambes store. The goods are physically located in France at the moment of supply → French VAT applies.

Article 32 — Place of supply where goods are dispatched or transported

“Where goods are dispatched or transported by the supplier, by the customer or by a third person, the place of supply shall be deemed to be the place where the goods are located at the time when dispatch or transport of the goods to the customer begins.”

Applies to: deliveries shipped from our Cambes warehouse to any French address (relay point, home, business address) → French VAT applies.

Article 138 — Exemption of intra-Community supplies of goods

“Member States shall exempt the supply of goods dispatched or transported to a destination outside their respective territory but within the Community, by or on behalf of the vendor or the person acquiring the goods, for another taxable person…”

Applies to: the intra-community exemption (VIES) only when goods are physically transported outside France — for example, delivered to your registered address in Poland or Germany. It does not apply to French domestic supplies.

French law

Article 258 of the French General Tax Code (Code Général des Impôts) — French VAT territoriality rules for supplies made in France.

Official text on Légifrance: https://www.legifrance.gouv.fr/codes/article_lc/LEGIARTI000043285059

How to recover French VAT

As a VAT-registered business in another EU Member State, you can recover French VAT paid on business purchases through the EU VAT Refund Directive (Directive 2008/9/EC) procedure.

Procedure

  1. Submit an electronic VAT refund application through the tax portal of your home Member State (e.g., e-VAT portal in Poland, ELSTER in Germany).
  2. Attach the original invoice from us (provided automatically with your order).
  3. Include your VAT registration number and proof of business use.

Resources

Example scenarios

Scenario 1 — Polish company picks up at our store

A VAT-registered company in Poland places an order on proteushop.com and chooses Click & Collect at the Cambes store.

  • Place of supply: France (Art. 31)
  • French VAT 20% applies on goods and shipping (0 € shipping in this case)
  • The customer can recover the French VAT through the Polish e-VAT refund portal

Scenario 2 — German company delivers to a French address

A VAT-registered company in Germany places an order and chooses delivery to a Mondial Relay pickup point in Toulouse, France.

  • Place of supply: France (Art. 32) — the goods are dispatched from our French warehouse and remain in France
  • French VAT 20% applies on goods and shipping
  • The customer can recover the French VAT through the German VAT refund portal

Scenario 3 — Belgian company delivers to its registered address in Belgium

A VAT-registered company in Belgium places an order and chooses standard delivery to its business address in Brussels.

  • Place of supply: Belgium (Art. 138) — the goods are dispatched to another EU Member State
  • No French VAT charged — VIES exemption applies
  • Standard reverse-charge procedure: the Belgian customer self-assesses VAT in Belgium

Frequently asked questions

Why is the VIES VAT number not enough to be exempt from French VAT?

The VIES VAT number is a prerequisite, but not sufficient. The intra-community exemption requires both:

  1. A valid VIES VAT number from the customer
  2. Goods physically transported across an EU border (Art. 138)

For in-store pickup or French delivery, condition 2 is not met → French VAT applies.

Can I refuse French VAT by choosing a different delivery method?

Yes. If you select delivery to your registered address in another EU Member State, the VIES exemption applies and no French VAT is charged.

If you have already placed an order and would like to change the delivery method, please contact us.

Is this the same rule in other EU countries?

Yes. The place-of-supply rules are harmonized across all EU Member States through Directive 2006/112/EC. The same logic applies for example if a French company picks up an order at a German store: German VAT would apply.