France reverse charge (autoliquidation) on services bought from abroad

When a French business buys services from a supplier abroad, it usually self-assesses the French VAT and deducts it in the same return. The cash effect is zero, but the entries must be there.

Alexia M.Comparisons and market guides editor

Published: 6 August 2026
Reading time: 1 min read

French companies buy services from abroad all the time: software from the US, a consultant in Germany, ads billed from Ireland. VAT on each follows autoliquidation, and the return has to show it even when the net cash effect is zero.

How it works

The foreign supplier invoices the net amount, without French VAT.
The French company declares French VAT on that amount in its return.
If entitled, it deducts the same amount as input VAT.

An example

A Lille agency pays a US design tool $1,500 a month, about €1,390. It declares €278 of VAT at 20% and deducts €278. The return shows both lines, and no tax is paid.

When it does not apply

Services taxed where they physically happen, such as some event admissions or work on French property.
Suppliers registered in France that charge French VAT correctly.
Purchases by consumers.

Paying the supplier

Most foreign software is billed in dollars by card. Each charge converts at the issuer's rate. The euro amount in the books should match what was charged, so keep receipts that show both.

Paying into France: the local rail

What	Detail
Local rail	SEPA Instant Credit Transfer
Run by	European Payments Council scheme, run by each bank
Settlement	Under ten seconds, 24/7
Published fee	By the EU Instant Payments Regulation, no more than the bank charges for a standard SEPA transfer

Source: European Payments Council: SEPA Instant Credit Transfer. Checked when this guide was last updated; the scheme's own page has the current figures.

Where Rivet fits

Rivet issues unlimited digital cards on every plan that spend from your USD balance, one per vendor with its own limit, so dollar subscriptions are paid in dollars and receipts sit on one ledger. EUR details with an IBAN come on Growth. Check our eligibility list for French companies. Rivet is not a bank; regulated partner institutions hold the funds. See Cards.

Questions people ask

Do I pay VAT on a US software subscription?

You self-assess it: report French VAT on the net amount and deduct it if you are entitled. Usually no cash changes hands.

What if the foreign supplier charged VAT?

Ask for a corrected invoice. Foreign VAT is not deductible in the French return.

Where does it go on the CA3 return?

In the lines for services acquired from non-established suppliers, with the deduction in the input tax lines. Your accountant maps them.

Does it apply to a micro-entrepreneur?

Businesses under the VAT franchise are still liable on services bought from abroad above certain thresholds. Ask your accountant.

Sources

Written by

Alexia M.

Comparisons and market guides editor

Alexia compares the accounts, cards and payment tools companies weigh before they switch, and writes Rivet's market guides for founders in a specific country. Prices in Alexia's comparisons come from each provider's own pricing page on the date given in the article, rules come from the regulator or tax authority that sets them, and every source is listed at the end.