Source: https://rivet.global/blog/france-buying-services-from-abroad-autoliquidation
Published: 2026-08-06 · Updated: 2026-08-06 · By Alexia M.

# France reverse charge (autoliquidation) on services bought from abroad

How a French company accounts for VAT on services from foreign suppliers under autoliquidation: when it applies, the VAT return lines and what the invoice should show.

## Key takeaways

- A French business buying most B2B services from abroad self-assesses French VAT (autoliquidation) at the applicable rate, usually 20%.
- It reports the VAT in its return and, if entitled, deducts the same amount, so the cash effect is usually zero.
- The supplier's invoice should show no French VAT; EU suppliers mention the reverse charge.
- Common cases are software subscriptions, consulting, advertising and cloud services.

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

1. The foreign supplier invoices the net amount, without French VAT.
2. The French company declares French VAT on that amount in its return.
3. 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](https://www.europeanpaymentscouncil.eu/what-we-do/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](/corporate-cards).

## Questions

### 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.