Finance Law No. 2019-1479 of December 28, 2019 for 2020 has simplified the formalities relating to distance sales of products subject to excise duty.

This provision covers the sales of excise products already released for consumption in a Member State of the European Union and sent directly or indirectly by a supplier not established in France to be delivered to individuals residing in France (B2C).

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The finance law for 2020 has transposed the so-called “quick fixes” measures provided for by Directive 2018/1910/EU of December 4, 2018 concerning intra-Community traffic in goods between taxable persons (B2B), with effect as of January 1, 2020.

The purpose of these measures is to strengthen the conditions for exemption from intra-Community supplies of goods, to simplify the system of chain sales when an intermediary operator is responsible for intra-Community transport, and to simplify the system of consignments of goods under deposit contract from one member State to another.

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The withholding income tax came into force on January 1, 2019.

Personal income tax withholding system is intended to adapt the recovery of the tax for one year to the actual situation of the user (income, life events) in respect of that same year, without changing the rules of calculation. Its objective is to eliminate the one-year lag between the collection of income and the payment of income tax.

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Background

The Commission proposes to replace the current transitional VAT provisions with a definitive system based on the taxation of intra-Union trade in goods and services in the Member State of destination.

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Background

Based on draft EU Directives and information available as at 1 September 2018, we understand that a number of short-term improvements to the current VAT system (“quick fixes”) should be introduced as from the year 2020, i.e. :

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Background

The European Court of Justice (ECJ) recently confirmed the exemption conditions applicable to the first supply made within the framework of cross-border chain sales (e.g. triangular transactions) where intermediate buyer-resellers (e.g. a trading company ‘B’ in chain sales between businesses A-B-C) are in charge of the intra-EU shipment of the goods.  In this case, the key point is whether the intra-EU transport made by or on behalf of B should be ascribed to his purchases (e.g. under incoterms EXW, FOB, FCA where the point of delivery of the first supply A-B is in the first EU member State) or to his sales.

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