The French VAT system is strict and highly formalized.

If you run a business operating in France or carry out transactions there, you must be prepared for the hard-line approach of tax authorities. Lack of precision, late filing, or an invoicing error can result in serious—and often high—penalties. Check what risks you face if you fail to comply with VAT obligations and why you should stay vigilant.

Late VAT returns in France – not only fines but also interest

If you do not submit your VAT return in France on time, the authority may treat it as missing and impose a standard penalty: €750.
If you ignore the request to file and fail to respond within 30 days, the penalty increases to €1,500—for a single document.

This applies not only to VAT returns. Mandatory statistical reports (such as EMEBI) must also be filed. Missing these also leads to charges: €750 for the first offence, and up to €1,500 for the next. In addition, €15 per missing item, which can quickly drive the total penalty up to €1,500.

Failure to pay VAT in France – penalties depend on intent

The French authorities clearly distinguish accidental mistakes from deliberate actions.If you simply fail to pay VAT and it is considered an oversight, you will pay 5% of the unpaid amount + 0.2% monthly interest.

But if authorities suspect intentional action, the penalty increases to 40% of the VAT due.In extreme cases—when VAT exceeds €100,000 and the act is considered fraud—criminal proceedings may follow, with penalties of up to 80% of the error amount.Interest is always added: 0.2% monthly.

Errors in VAT returns – small mistakes can cost a fortune

Mistakes in VAT returns, even small ones, are treated very seriously.
If the authority considers the mistake negligent, you will pay 5% of the error amount.If intent is suspected, the penalty increases to 40%.

The highest risk arises when an error was intentional and deliberately concealed. Then the penalty reaches 80%, and criminal proceedings may follow.

VAT registration and “VAT recovery for past periods” – time limits in France

If you have expenses incurred before VAT registration and you want to recover VAT, you can do so only if:

• invoices are valid,

• the expense occurred up to two years before the start of the tax year in which VAT activity began.

Exceeding this period = no right to recover VAT.

Reverse charge (autoliquidation) – mistakes also cost money

France applies the reverse-charge mechanism (autoliquidation), for example on import of goods.
This means you, as the recipient, must account for VAT—not the supplier.
The supplier’s invoice must not include VAT and must contain the note “Autoliquidation”.

Missing this note or incorrect settlement exposes you to penalties. This issue is often overlooked but appears frequently during audits.

Electronic filing obligations – not just a formality

Failure to submit electronic declarations or pay through e-filing is treated seriously.
In addition to basic fines, authorities may impose:

• 10% of VAT due if you fail to submit,

• 5% of VAT due if submitted after formal notice (within 30 days),

• 40% if submitted after more than 30 days,

• 80% after a second notice.

Interest also applies: 0.2% per month.

Omissions and incorrect data – penalties even for minor errors

If you make an error in the VAT return or EMEBI report, the penalty is €15 per mistake, up to €1,500 per document.
For invoices – €15 per missing item, up to 25% of invoice value.
If authorities consider the failure intentional – €1,500 fine.

Why is the French tax office so strict?

French tax authorities operate under a simple rule: whoever doesn’t stay compliant, pays.The system forces companies to be precise and punctual. There is no room for “I forgot”, “I didn’t know”, or “it was a mistake”.

If you run a business in France, you need solid accounting support. You may try to handle it yourself, but one VAT return filed a week late can cost you €750. The second time? €1,500.

Conclusion

VAT in France is not a topic to take lightly. It’s not about individual mistakes but an entire legal system designed to punish delays, errors and inconsistencies. The penalties speak for themselves.
If you plan to do business in France—even on a small scale—make sure you have support that understands the system and keeps you compliant.