Selling DDP in France: VAT and Customs Rules for Foreign Businesses
Selling DDP (Delivered Duty Paid) in France is an ideal growth lever for offering a “seamless” experience to your customers, but it is a complex leap for your tax management. Are you wondering how to sell DDP in France? In practice, you must take on the role of the official importer. This requires rigorous preparation: obtaining a valid EORI number, VAT registration with the SIEE, and mastering the Import VAT Reverse Charge mechanism (which is now mandatory and automated on the VAT Return form CA3). The trap? Forgetting that for companies established outside the EU, appointing a Tax Representative in France is a legal necessity.
I am Jim, VAT Specialist at Eurofiscalis. I assist French and international companies in securing their operations across Europe.
🎯 Key Takeaways:
- Mandatory VAT Registration: Since you are making a local sale after the import, a French VAT number is indispensable.
- EORI Number: Required to appear as the importer on the customs declaration.
- Automatic Reverse Charge: Since January 1, 2022, import VAT is no longer paid at the border but is declared on your VAT Return (CA3).
- Tax Representative in France: Mandatory for non-EU companies (except for specific treaty exceptions).
- DDP Incoterm: You assume 100% of the risks, customs duties, and tax compliance right to the customer’s doorstep.
What are Your Obligations for Selling DDP in France?
The French tax authorities do not compromise on non-resident compliance. Here is your legal roadmap.
Does a Foreign Company Need to Register for VAT in France?
The answer is YES. Since you are clearing goods in your own name and then performing a delivery on French territory, you are carrying out a taxable operation. You must obtain a French VAT number from the SIEE for non-residents.
EORI Number: Is it Mandatory and How Does it Differ from VAT?
The EORI number is your unique customs identifier in the EU. It is mandatory. Without it, your goods will remain blocked at the port or airport.
- VAT Number: For your tax filings (VAT Returns).
- EORI Number: For your customs declarations (border).
Who Must Appoint a Tax Representative in France?
If your company is established outside the EU (USA, China, UK, etc.), you must appoint a Tax Representative in France. They file your returns and are jointly and severally liable for your VAT before the administration.
How Does Selling DDP in France Work? (IOR and Logistics)
The DDP (Delivered Duty Paid) Incoterm means you deliver “turnkey.” However, legally, this changes everything.
What is a DDP Sale to France?
In practice, the goods cross the border in your name. You are the exporter in your country of origin, but you become the Importer of Record (IOR) on French soil. This means you bear the transport costs, risks of loss, customs duties, and VAT.
Who Actually Bears the Duties and Taxes in DDP?
It is you, and no one else. Your customer should not receive an invoice from the carrier for customs fees. If they do, you are not selling DDP, but DAP, and you risk losing your customer. In DDP, you include these costs in your final selling price.
How to Invoice Your French Client for a DDP Sale?
This is where ERP configuration errors can become costly.
DDP B2C Invoicing: Should You Display a Price Including Tax?
Absolutely. For a French private individual, the price displayed on your website must be the final price. There should be no “customs surprises.” You collect French VAT (20%) and provide them with an invoice including all taxes (TTC).
DDP B2B Invoicing: When to Use the Reverse Charge (Art. 283-1)?
If your client is a French company with a valid FR VAT number, you must invoice Excluding Tax. Under Article 283-1 of the CGI, your client is liable for the VAT: they self-declare it on their own VAT Return.
Conversely, if you deliver to a small association or a micro-enterprise that does not have an intra-community VAT number, you must treat them like individuals: invoice including 20% VAT.
💡 Expert Advice: Do not be misled by your registration. Having an FR VAT number does not mean you are “established.” If you do not have offices or staff in France, you remain “non-established.” In this case, the reverse charge by your taxable B2B client is mandatory. If you charge VAT to a pro who has a number, they will not be able to recover it!
Summary Table: DDP Sales Invoicing in France
| French Buyer Profile | Invoice Type | VAT Applied | Mandatory Legal Mention |
|---|---|---|---|
| B2C (Individual) | Price incl. tax | 20% (FR VAT) | – |
| B2B Taxable (with FR VAT number) | Price excl. tax | 0% (Reverse Charge) | Reverse charge by the buyer – Art. 283-1 of the CGI |
| B2B Non-Taxable (no VAT number) | Price incl. tax | 20% (FR VAT) | – |
Import VAT: How to Manage the Reverse Charge?
Cash flow management is the heart of the matter.
The Automatic Import VAT Reverse Charge Mechanism
Since January 1, 2022, you no longer pay VAT at the time of customs clearance. It is reverse-charged. This means the amount is reported on your VAT Return (CA3) in a neutral manner: one line for “VAT due” and one line for “deductible VAT.”
How to Report Import VAT on Your CA3 VAT Return?
The administration pre-fills your return based on your customs data. Your role (or that of your tax expert) is to verify that the amounts match your purchase invoices and customs documents (Delta G). Do you need to pay VAT at customs? No. Everything happens through the French VAT Return.
Partners: Who Facilitates Your DDP Logistics?
Do not try to manage this alone. DDP is a precision mechanism that requires local experts.
The Registered Customs Representative (RDE)
The RDE is an authorized professional who acts on your behalf with Customs. Their contribution is vital:
- Tariff Classification: They secure the HS Code. An error here can lead to immediate adjustments on customs duties.
- Origin Management: They check if you can benefit from reduced or zero rates via free trade agreements.
- Technical Interface: They transmit your FR VAT number to the customs system so the automatic reverse charge triggers correctly.
The Tax Representative in France: Your VAT Control Tower
They are the strategic partner.
- For Non-EU Companies: They are legally mandatory. They are your guarantor before the French Treasury.
- For EU Companies: While not mandatory, using a tax agent is highly recommended. They understand local specificities (like the mandatory domestic reverse charge) and manage relations with the SIEE on your behalf, ensuring total compliance and a faster VAT Refund if a credit arises.
The Logistics Provider (3PL)
The 3PL handles the physical part: transport, storage, and “last mile delivery.” Working with a 3PL in France allows you to clear goods “in bulk” upon arrival and then deliver to local customers within 24 hours.
Checklist: Actions and Documents for Selling DDP
Before clicking “send,” ensure you have everything ready:
- [ ] EU EORI Number: Verified and valid.
- [ ] FR VAT Number: Issued by the SIEE.
- [ ] Tax Representation Mandate: (For non-EU companies).
- [ ] HS Codes (Tariff Classification): To precisely calculate duties.
- [ ] Customs Proof (BAE): To be kept carefully for 10 years.
FAQ: Mastering DDP Sales in France
How do I sell DDP in France as a foreign company?
You must obtain a French VAT number and an EORI number. For non-EU companies, a Tax Representative in France is indispensable for managing your VAT Returns.
How do I invoice a French professional client in DDP?
If the client has an FR VAT number, invoice without tax and include the mention “Autoliquidation Art. 283-1 du CGI”.
What are the risks of non-compliance?
Penalties can reach 40% of the tax due, plus late interest and the risk of having your operations blocked at customs.
Discuss your international tax situation with our experts.
Jimmy
J’ai pour objectif de simplifier et vulgariser les règles de TVA pour les e-commerçants et les sociétés s’exportant à l’international. Je sais combien cela peut être complexe et fastidieux, et je suis convaincu que mon expérience et mes connaissances peuvent aider les entreprises à comprendre et à respecter les réglementations fiscales en vigueur.