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France: VAT ruling on dropshipping

Clarifying VAT declaration and liability rules when supplier has not opted for IOSS scheme

April 22, 2026

The tax authorities issued a ruling clarifying the VAT declaration and liability rules applicable to dropshipping transactions when the supplier has not opted for the import one‑stop shop (IOSS) scheme.

The ruling distinguishes VAT treatment based on whether goods are imported into the EU via France or directly into the member state of destination, and on whether the intrinsic value of the goods is below or above €150.

It also clarifies the allocation of import VAT liability between the seller and the final customer when goods are imported into France and subsequently supplied to French consumers.


For more information, contact a KPMG tax professional in France:

Arnaud Moraine | arnaudmoraine@kpmgavocats.fr

Laurent Chetcuti | laurenchetcuti@kpmgavocats.fr

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