France publishes Guidelines for Online Platforms to Fight VAT Fraud

The Government of France on 8 January, 2020 published the guidelines on VAT that affects online platforms. An explanation is provided on the extent to which the reporting obligations will affect the platforms.

The operators of the concerning platforms should register guidelines with the authorities to obtain a number from the identification system of the business directory (SIREN).

As per Article 10 of Law No.2018-898 of 23 October 2018 on the fight against fraud, on occasion of transactions requires to:

1. provide fair, clear and transparent information on tax obligations and social responsibility of people who carry out commercial transactions through it.

2. send electronically to sellers, providers or parties to the exchange or sharing of a good or service who have received, as a user of a platform, sums on the occasion of the transaction with information documenting the following:

•   the elements of identification of the operator of the platform concerned;
•   the user identification elements ;
•   the status of individual or professional indicated by the user of the platform;
•   the number and the total gross amount of transactions carried out by the user during the previous calendar  year;
•   if known to the operator, the details of the bank account into which the income is paid

3. send electronically to the tax authorities, no later than January 31 of the year following the year for which the information is given, a document summarizing all the information mentioned in (2).

For Guidelines Click here.