Case 1 — Non-EU Amazon FBA seller
This is the most common case. A US, British, Canadian or Asian e-commerce merchant uses the FBA (Fulfillment by Amazon) programme to store their products in Amazon warehouses in France and ship them to French customers.
Situation
Business based in the United States. Products: electronic accessories. Stock: 2,000 units in the Amazon warehouse at Montélimar. Annual French sales: €180,000.
Obligations
Obligations
- Mandatory VAT registration in France (VAT on sales + import VAT recovery)
- Mandatory accredited DGFiP tax representative (non-EU business)
- Monthly CA3 returns (high volume)
- Amazon collects VAT on marketplace sales — but import VAT on stock entries must be managed separately
Case 2 — Shopify or WooCommerce store selling to French customers
A Canadian e-commerce merchant sells handcrafted jewellery through their Shopify store directly to French customers. Products are shipped from Canada, with no stock in France. Average parcel value: €80.
Situation
Business based in Canada. Annual French sales: €45,000. Average parcel value: €80 (below the IOSS threshold of €150).
Obligations
Obligations
- IOSS possible for parcels under €150: registration through a fiscal intermediary established in the EU
- If IOSS is not used: VAT levied at import by French customs, paid by the customer
- If the seller wants to manage VAT themselves (smooth customer experience): VAT registration + accredited tax representative
Practical advice
For stores with high order volumes to France and parcels under €150, IOSS improves the customer experience (no surprise at delivery) while simplifying tax compliance. A tax representative or fiscal intermediary can guide you in this choice.
Case 3 — SaaS publisher with B2B and B2C customers in France
A British startup (post-Brexit) markets accounting software as SaaS. Its French customer base consists of 80% businesses (B2B) and 20% private individuals (freelancers, self-employed persons not liable for VAT).
Situation
Business based in the United Kingdom. French revenue: €90,000/year including €18,000 B2C (private individuals).
Obligations
Obligations
- B2B sales: reverse charge by French customers — no VAT to collect
- B2C sales: French VAT to collect and remit (20% on €18,000 = €3,600)
- UK being outside EU post-Brexit: accredited tax representative mandatory
- Quarterly declarations sufficient given the amounts
Case 4 — Asian dropshipper delivering directly to France
An entrepreneur based in Singapore sells home décor products via a WooCommerce store. Orders are transmitted directly to a supplier in China, who ships parcels to French customers. Average parcel value: €35.
Situation
Business based in Singapore. Shipments from China. Average value €35 (below IOSS threshold). French sales: €60,000/year.
Obligations
Obligations
- IOSS applicable for parcels under €150: allows VAT to be collected at the point of sale
- Singapore being outside EU: use of a fiscal intermediary in the EU for IOSS registration
- If some shipments exceed €150: standard VAT obligations + accredited tax representative
- If a warehouse or stock is held in France: accredited tax representative mandatory in all cases
Do not confuse IOSS intermediary and VAT tax representative
The IOSS intermediary manages only the import One-Stop Shop for parcels under €150. The DGFiP-accredited tax representative covers all French VAT obligations. If you have operations outside the IOSS scope, only an accredited tax representative can officially represent you before the tax authorities.
Whatever your e-commerce situation, consult our list of DGFiP-accredited tax representatives to find the professional suited to your needs.
Frequently asked questions
If the dropshipper sells to French private individuals from a supplier located outside the EU, they are required to collect French VAT. For shipments under €150, they can use IOSS through an intermediary. Beyond that, or for other taxable operations in France, an accredited tax representative is mandatory when the business is not established in the EU.
Amazon collects VAT for sales made through its marketplace since July 2021 for non-EU sellers. However, if your goods are stored in France (FBA), you have additional VAT obligations related to the importation. You will generally still need to register to recover import VAT and for any sales outside the marketplace.
Yes. Since Brexit, the United Kingdom is a third country outside the EU. A British business carrying out taxable operations in France (goods deliveries, services to private individuals) must designate an accredited tax representative, exactly like a US or Chinese business. The European OSS is no longer available to them.
Yes. Since July 2021, Etsy collects VAT for B2C sales in the EU as a facilitating marketplace. This simplifies the situation for small sales. But if the Canadian seller carries out other taxable operations in France (stock, direct sales), they must register and designate a tax representative. The amounts from which this becomes relevant depend on the volume of activity.
The cost varies according to the volume of activity and the number of annual declarations. In practice, annual fees for a tax representative for an e-commerce merchant range from €800 to €2,500 per year for a standard activity (quarterly declarations), with set-up fees of €300 to €800 for the initial registration. Specific rates exist for high-volume businesses.