Why am I being charged 20% French VAT?
If you have not provided a valid German VAT identification number (USt-IdNr.) before your invoice is issued, EU VAT rules require us to treat you as a private customer (B2C). In this case, French VAT (20%) must be applied.
How does VAT normally work for German business customers?
For business customers with a valid German VAT ID, the reverse charge mechanism applies: • Invoices are issued without French VAT. • You declare and pay VAT directly in Germany via your own VAT return. This is based on Articles 44 and 196 of the EU VAT Directive.
What happens if I provide my VAT ID late?
Qonto cannot automatically correct invoices issued with French VAT. Once VAT has been invoiced and potentially declared to the French tax authorities, we cannot refund it directly. Customers may request a refund via the EU VAT refund procedure with their local tax authorities. To prevent this, we require a valid VAT ID before issuing invoices.
Can French VAT already paid be refunded?
French VAT cannot be refunded directly by Qonto once invoiced. If the VAT ID was missing at the time of invoicing, the only option is for the customer to use the EU VAT refund procedure to recover VAT from the French tax authorities.
How can I avoid VAT issues in the future?
Provide a valid German VAT ID during onboarding or before the first invoice is issued. This ensures invoices are issued under the reverse charge mechanism, without French VAT.
In summary:
- Valid VAT ID provided upfront → invoices without French VAT (reverse charge applies).
- No VAT ID → invoices include French VAT (20%).
- VAT ID provided later → Qonto cannot guarantee correction or refund. Customer must use the EU VAT refund procedure.
Useful resources:
- VAT Refund Contact Points: The European Commission provides a comprehensive directory of VAT refund contact points for all EU Member States: VAT Refund Contact Points by Member State
- Your tax advisor can help you navigate the refund process