The 2015 Amending Finance Act and 2016 Finance Act do not implement big changes in the VAT legislation.

Alongside some sectorial measures for the social housing sector (the tax rate of 5,5% remains in force and the legislator eases the eligibility to the tax rate of 10%) and feminine hygiene products (application of the reduced VAT rate of 5,5%), new measures against VAT fraud which is now estimated to €14 billions by the Ministry of Finances, have been adopted.

First of all, the threshold applicable to distance sales is lowered from €100 000 to €35 000 in order to include into the scope of French VAT taxation an higher number of sales carried by operators based outside France to French final customers (Article 9 of the Finance Act for 2016).

A particular attention is also paid to the use of fraudulent software which enable taxpayers to write off cash payments from their taxable base. As from 2018, taxpayers will have to use only dully certified software (Article 88 of the Finance Act for 2016).

At last, Article 91 of the Amending Finance Act for 2015 denies the right to recover VAT to all taxable persons purchasing a service and who knew or could have known that the VAT paid to its supplier will not be paid to Treasury.

Only the improvement of the VAT collection rate will tell us in the future if these new measures are efficient... or not.