E-Commerce: Estonia vs France VAT Rules

    How VAT obligations differ for e-commerce between Estonia and France.

    CriterionEstoniaFrance
    Standard rate applied22%20%
    Registration threshold€40,000 annual turnover€85,800 (goods) / €34,400 (services)
    Filing frequencyMonthlyMonthly or quarterly
    Invoicing constraintsStandard EU requirements. E-invoicing strongly encouraged. Simplified invoices allowed under €160.Invoices must include a sequential number, date, seller/buyer details, VAT number, description, and amounts. E-invoicing mandatory for B2B from 2026.
    Sector-relevant regimesE-Residency program affects VAT obligations · Reverse charge for metal waste and precious metals · Simplified invoicing for small amountsAuto-entrepreneur regime with simplified VAT · Special rules for DOM-TOM territories · E-invoicing mandate rolling out 2026-2027
    Penalty exposure0.06% per day interest on late payments. Penalty up to €3,200 for filing violations.10% surcharge for late filing, 40% for deliberate non-compliance, 80% for fraud.

    Typical use cases

    Physical Goods
    Tangible products shipped to customers across the EU.
    Digital Products
    E-books, software licenses, online courses, and digital downloads.
    Dropshipping
    Selling products shipped directly from a third-party supplier.
    Marketplace Selling
    Selling through Amazon, eBay, Etsy, and other marketplaces.
    Subscription Boxes
    Recurring product deliveries and subscription-based commerce.

    Disclaimer : This tool is provided for informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor for decisions regarding your tax situation.Source : EU VAT Directive 2006/112/EC

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