According to provisions of French tax law, operators of online platforms, that act as an intermediary, must submit a user’s activity report:
■ to users themselves (since 2016) ;
■ to the French tax authorities (since 2019) with data about the users.
The next declaration to the French tax authorities is due before 31 January 2022.
This reporting obligation covers the following transactions:
- Transactions performed by users established in France ;
- Transactions performed by users not established in France and deemed to take place therein according to VAT regulation.
Information due before 31 January 2022
In general, the scope of the rules concerning the reporting obligations of online platform operators applies to entities established in France or abroad, as soon as they have users making sales or services in France within the meaning of the territoriality rules applicable in terms of VAT.
2° of 242 bis of the French tax law provides the information to be communicated to the French tax authorities which includes:
■ The company’s details—such as the business name, place of establishment, company SIREN registration number.
■ With regard to the user, there is a distinction as to whether the user is a "professional" (company) or a "non-professional" (individual) and thus the nature of the user must be indicated.
□ For a professional user, all required information is listed in Article 23 L of Appendix IV of the French tax law.
□ For a non-professional user, the report must include notably:
▪ The user’s surname and/or common name
▪ First name
▪ Address
▪ Telephone number (preferably mobile phone)
▪ E-mail address
▪ Date of birth
■ For both professional and non-professional users, the platform should report:
□ for French users, the amounts of the whole turnover and the amounts subject to French VAT;
□ for foreign users, the amounts of the turnover subject to French VAT
Platform operators should also verify ID of some private individual users' identity.
The declaration by the online platform must be filed in a computerized (electronic) format according to the pattern provided by the French tax authorities (i.e., an XML file). No other document format is acceptable. Paper or mail applications will not be accepted.
We have developed a methodology based on our technical knowledge and practical experience allowing us to assist various platform operators.
Please note, in the course of the discussions of the finance bill for 2022, a measure presented by the French Government was adopted in order to transpose the DAC 7 Directive in French law, and would enter into force as from 1 January 2023. Reporting obligations required under article 242 bis of the French tax law would be amended conformingly to the Directive requirements.
