In France, self-employed individuals and microbusinesses are not required to file value-added tax (VAT). As businesses, they are exempt from VAT. However, in certain cases, these professionals must request an intracommunity VAT number to comply with tax law.

This article explains VAT numbers for self-employed individuals and microbusinesses, including when they are required and how to get an intracommunity VAT number.

What’s in this article?

• Overview of VAT numbers
  
• Do self-employed individuals need an intracommunity VAT number?
  
• When do self-employed individuals need a VAT number?
  
• Obtaining a self-employment VAT number
  
• Finding a microbusiness VAT number
  
• Verifying self-employment VAT numbers
  
• How Stripe Tax can help
  

Overview of VAT numbers

An intracommunity VAT number is a taxpayer identification number automatically assigned to a newly registered company that is subject to VAT. The VAT number identifies a company within the EU and facilitates business transactions between member states.

When people refer to a “VAT number,” they actually mean an intracommunity VAT number, even though these two have different functions. In France, VAT numbers are used in invoicing and filing VAT with tax authorities. Within the EU, VAT numbers make it possible to do business with other member countries and avoid double taxation, even when a company is not subject to VAT.

Note: While VAT numbers are used to invoice French customers for VAT, invoices should not include tax at the EU level. In these two cases, the VAT number must be indicated on all invoices.

Do self-employed individuals need an intracommunity VAT number?

No, self-employed individuals do not need a VAT number because they are exempt from VAT. They are also not required to file VAT because they do not invoice customers in France for VAT and cannot deduct VAT for business expenses.

Therefore, invoices issued by self-employed individuals or microbusinesses under a given revenue cap must include the phrase, “VAT is not applicable per Article 293 B of the General Tax Code” (“TVA non applicable, article 293 B du Code général des impôts”).

When do self-employed individuals need a VAT number?

Self-employed individuals and microbusinesses can be required to obtain a VAT number in two situations:

• If they are no longer exempt from VAT, either voluntarily or because they exceed the sales cap
  
• If they wish to conduct business within the EU
  

VAT exemption

To be exempt from VAT, self-employed individuals and microbusinesses must remain below the annual revenue cap. Here are the limits revenue must not exceed:

• Sales and lodging: €85,000 for the preceding calendar year or €93,500 for the current calendar year
  
• Services: €37,500 for the preceding calendar year or €41,250 for the current calendar year
  
• Regulated business by attorneys: €50,000 for the preceding calendar year or €55,000 for the current calendar year
  
• Intellectual property or performance art: €50,000 for the preceding calendar year or €55,000 for the current calendar year
  

The day a self-employed individual exceeds the revenue cap, they become subject to VAT and must apply for an intracommunity VAT number.

A business owner can also request a self-employment VAT number if they decide to voluntarily waive VAT exemption in order to invoice customers for VAT or deduct business expenses. In this case, the business owner can decide to keep the microbusiness scheme or use the simplified tax regime instead.

Intracommunity transactions

A microbusiness or self-employed individual must also request an intracommunity VAT number if they engage in certain transactions with other EU countries, including the following:

• Intracommunity delivery of goods of over €10,000 annually from a company subject to another EU member state’s VAT
  
• Purchase or sales of intracommunity services in any amount from a company subject to another EU member state’s VAT
  
• Distance sales of goods of over €10,000 annually to individuals not subject to another EU member state’s VAT
  

An intracommunity VAT number is also required for the following:

• Reverse charging VAT in France for intracommunity acquisitions of goods and services
  
• Filing VAT returns for providing services and distance selling of goods
  
• If intracommunity transactions do not exceed €10,000, obtaining an intracommunity VAT number is optional for self-employed individuals and microbusinesses.
  

Note: Obtaining an intracommunity VAT number does not change the tax scheme for self-employed individuals. They remain exempt from VAT within the limits of the revenue caps.

Obtaining a self-employment VAT number

To obtain a self-employment VAT number, businesses must apply to the corporate tax office (Service des Impôts des Entreprises, or SIE) nearest to the company’s registered office. Once the company submits the application, the SIE issues the intracommunity VAT number within 48 hours. There is no charge for receiving a number. It only requires companies to create business accounts on the tax authority’s website.

Once they have obtained an intracommunity VAT number, self-employed individuals and microbusinesses must include it on all invoices and quotes, even if the business is exempt from VAT.

Finding a microbusiness VAT number

The microbusiness VAT number can be found in the following places:

• A company’s business tax summary
  
• Invoices issued to customers
  
• VAT filings sent to tax authorities
  

Self-employment VAT numbers for professionals based in France are easy to recognize. They are composed of 13 characters: a country code for France (FR), a two-digit verification code, and a nine-digit establishment directory identification system (SIRET) business number.

Verifying self-employment VAT numbers

VAT numbers for self-employed individuals and microbusinesses can be verified online in the VAT Information Exchange System (VIES) on the European Commission’s website. To verify that an intracommunity VAT number is valid, enter the country code and number.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition it automatically calculates and collects sales tax, VAT, and GST on both physical and digital goods and services—in all US states and in more than 100 countries.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful API.

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration or add tax collection with the click of a button in the Stripe Dashboard.
  
• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.
  
• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.
  
• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.
  

Learn more about Stripe Tax, or get started today.