The French Tax Authority issued guidance on March 4, 2026 clarifying VAT obligations for dropshipping operations that do not use the IOSS. The guidance sets thresholds for import VAT liability, specifies when the seller or consumer is responsible, and requires non‑EU sellers to appoint a tax representative. It also defines the place of taxation for cross‑border distance sales.
Shipments under €150 are not subject to import VAT in France; shipments over €150 trigger import VAT liability for the seller.
If the taxable base used for the import differs from that used for the sale, the seller must account for both import VAT and VAT on the transaction.
They must appoint a tax representative in France unless a mutual assistance agreement exists with their country of origin.
The place of taxation is the EU country where the final customer resides.
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