Tax policy directorate – Bureau a

B. OFFSETTING THE TAX ON INPUTS 
Except where expressly provided otherwise (e.g. expenditure on accommodation, passenger transport, 
etc.), VAT invoiced to liable persons by their suppliers on acquired goods and services (purchases, 
overheads, capital expenditure) used to perform transactions liable to VAT or exempt from VAT but 
giving entitlement to a deduction (foreign trade transactions) is deducted from gross VAT. 
Taxpayers themselves determine the total amount of VAT to be paid. 
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Article 79 of the 2015 Supplementary Budget Act no. 2015-1786 of 29 December 2015. 
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As from 1 January 2015 (Article 22, 2015 Budget Act No. 2014-1654 of 29 December 2014).
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As from 1 January 2015 (Article 21, 2015 Budget Act No. 2014-1654 of 29 December 2014). 

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If the difference between gross tax and input tax is negative, liable persons will generally offset the 
surplus against their future tax liability, though they may ask for a refund under certain conditions. 
Liable persons based in other countries may under certain conditions obtain a refund of VAT charged 
on goods purchased or imported and services provided in France under the procedure provided for in 
Directive 2008/9/EC of 12 February 2008 (taxable persons established in an EU Member State) or the 
Thirteenth Council Directive 86/560/EEC of 17 November 1986 (taxable persons not established in an 
EU Member State). 
IV – OBLIGATIONS ON LIABLE PERSONS 
Liability to VAT entails the following obligations: 
• 
Reporting the existence, identification or discontinuation of an activity 
• 
Keeping itemised accounts supported by vouchers or a special ledger 
• 
Issuing invoices showing the price excluding VAT, the rate, the amount of VAT and the VAT 
identification number of the seller or service provider and, for certain intra-Community 
transactions, that of the buyer or customer 
• 
Filing monthly or quarterly turnover returns, depending on the annual amount of tax payable 
A reverse charge procedure for import VAT was introduced as from 1 January 2015. This procedure 
allows certain taxpayers to declare and deduct VAT owed on import transactions on their turnover 
return filed with the tax authorities, as a departure from the principle of declaring and paying this tax 
to Customs. 
Initially, the reverse charge procedure concerned only taxpayers liable to VAT, located in the 
European Union and authorised to use a clearance procedure with single domicile (PDU), as well 
as taxpayers located outside the European Union if their Customs representative had PDU 
authorisation. 
Since 1 January 2017,
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an authorisation procedure has replaced the previous opt-in procedure, 
and the requirement of PDU authorisation for the Customs representatives of non-EU importers has 
been repealed. This new procedure extends the principle of reverse charge for import VAT to 
taxpayers with Authorised Economic Operator (OEA) status and to those that do not have OEA 
status but can offer comparable guarantees.
• 
Filing European Sales Lists for goods and services for certain intra-Community transactions for 
statistical and tax purposes 
• 
Voluntarily paying the tax to the Business tax service (service des impôts des entreprises, SIE) 
on submitting the turnover return or in instalments paid in advance. 
These obligations are reduced for liable persons exempt from VAT.