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V0076-24 15 February 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega intracomunitaria de bienes

Bicycle sales to businesses in France are exempt intra-Community supplies; sales to individuals are taxed at destination once threshold is met

A bicycle company seeks guidance on how to tax its sales in France to professionals and private individuals. The DGT rules that sales to professionals constitute exempt intra-Community supplies, whereas sales to individuals are taxed in France upon exceeding a specific threshold or if the Union scheme is elected.

The question raised

1. Liability for Value Added Tax on the sale of bicycles in France to entrepreneurs or professionals. Reporting obligations.

The DGT's ruling

Sales to entrepreneurs in France are intra-Community supplies of goods that are subject to but exempt from VAT, and must be declared in forms 303 and 349. Sales to private individuals are intra-Community distance sales that are taxed in the Member State of destination (France) when the 10,000 euro threshold is exceeded or when the option to tax at destination is exercised. For the latter, the taxpayer may register in France or opt for the Union scheme (One Stop Shop OSS) via form 369.

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