France – Proof of VAT exemptions on exports 

Exporting goods from France – How to justify VAT exemption in the event of a tax audit 

Definition of a VAT-exempt exportation  

Exportation refers to the delivery of goods shipped or transported outside the European Union by the seller, the buyer, or on their behalf.  

Article 146.1 of Council Directive 2006/112/EC of November 28, 2006, transposed into Article 262-I of the General Tax Code (CGI), exempts the export of goods from VAT. 

 Article 74 of Annex III to the CGI and BOI-TVA-CHAMP-30-30-10-10 of the French administrative doctrine specify the conditions for VAT exemption on the export of goods. 

To benefit from a VAT exemption, the supplier must comply with specific accounting obligations (recording operations in accounting books or keeping a register) and be able to prove the reality of the export (customs proof or alternative proof). 

What are the valid proofs to justify the delivery of goods outside the european union? 

Proofs of exports 

To justify the export of goods, it is possible to provide: 

– Either the electronic certification of exit from the territory of the European Union within the framework of the dematerialized export customs declaration or the third copy of the export customs document. 

– Or one of the alternative proofs listed in points 1° to 4° of Article 74 of Annex III to the CGI. 

Unless the tax authorities have contrary evidence, one of these proofs is sufficient to benefit from the VAT exemption. 

Customs proof of export 

 Within the framework of the dematerialized export customs declaration, a copy or a screenshot of the electronic exit certification of goods via the Export Control System (ECS) is sufficient. 

 In the event of electronic procedure failure, the customs clearance procedure is carried out on paper. To justify the export, the third copy of the single administrative document for export serves as proof justifying the VAT exemption. 

Control Point: You must ensure that you are listed in box 2 “Exporter” of the customs document and that the final declaration is under the status “ECS exit.” This ensures that you are the exporter benefiting from the VAT exemption and that the goods have left the European Union. If you are not the customs exporter, your French VAT number must appear in box 44 of the customs declaration preceded by code 1005. 

Alternative proofs of export 

 Several alternative proofs are possible: 

• The import customs document in the country of arrival of the goods  

This is the import customs document issued during the customs clearance of goods at the place of delivery (the third country of the European Union). The document must be provided with an official translation.  

Consistency must be established between this declaration and the exported goods (nature and quantity) for the proof to be valid. 

• Transport documents for goods 

Any transport document for goods to a third country outside the European Union is valid. This includes an international consignment note (CMR), a sea bill of lading (FIATA multimodal transport bill of lading – FBL), or an air waybill (AWB), etc. 

• Control Point 

Warning – The transport document must certify the delivery of goods to the third country outside the European Union. If the document only certifies the transport of goods to a port or airport within the European Union, it does not constitute valid proof of exemption. A link to the exempt sales invoice must also be possible. 

• The customs surveillance document  

Some goods (weapons, ammunition, medicine) are subject to special controls. The exporter can provide any customs surveillance document for the shipment of goods outside the European Union, provided they are endorsed by the customs service. This applies to products subject to dual-use goods regulation or CITES permits. 

• The accompanying document for products subject to excise duty   

Excisable products are subject to movement tracking. The exporter can present the accompanying documents endorsed by the customs office at the point of exit from the European Union.  

Examples include alcohols or tobaccos. 

Justification in case of tax audit  

In case of a tax audit, the exporter must be able to provide a sales invoice (in case of a firm sale) or a “customs invoice” (in case of transfer without sale) as well as one of the export proofs mentioned above.  

Consistent information must be provided to link the proof of export to the transaction in question (nature, quantity of goods and name of exporting company).   

Administrative court of Paris may 16, 2024 judgment no. 2200955 

The administrative court confirmed the tax administration’s position, stating that the customs document and transport letters are insufficient if the name of the exporting company does not appear on these documents. The court also considered that the absence of a document proving the sale of goods (sales invoice and proof of payment) by the company does not allow establishing a link with the delivered goods. 

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VAT Solutions offers a range of services to assist you with your VAT-related challenges in France and internationally:

– Diagnostic of your VAT organization, your flows, and the methods for preserving proof of exempt operations, as well as assessing the impact of new VAT rules;

– Confirmation of the VAT treatment of your flows;

– Coaching/training;

– Management of VAT obligations in Luxembourg and abroad: assistance, preparation, and submission of VAT identification requests and VAT returns.

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