Understanding EU VAT Rules and Your Invoices
EcoVadis SAS is a French entity. Under European Union (EU) tax regulations, transactions on our platform are governed by EU intra-community trade laws and French domestic tax legislation.
To ensure correct billing, your organization's tax registration status must be up to date in your EcoVadis profile.
Why is a 20% VAT charge applied to my invoice?
The application of the standard 20% French VAT rate depends on your business location and registration status:
- EU Businesses (Outside France) without a validated VAT number: Under EU directives, cross-border B2B transactions without a verified Intra-Community VAT number must be treated as B2C (consumer) sales. Consequently, the standard 20% French VAT rate applies.
- French Businesses: For companies physically located in France, French VAT (20%) is legally mandatory on all domestic services. This VAT is fully deductible through your standard local corporate tax filings
| Customer Location & Status | Applied VAT Rate | Tax Mechanism |
|---|---|---|
| EU (Outside France) + Valid VAT Number | 0% | Reverse-Charge System |
| EU (Outside France) + Missing/Invalid VAT | 20% | French VAT Applied |
| France (Domestic) | 20% | Mandatory Domestic VAT |
How to avoid VAT charges (EU businesses outside France)
To apply the 0% reverse-charge mechanism to your future invoices, please update your account parameters before processing payments:
- Verify your VAT activation status: Confirm your VAT number is active for cross-border EU trade using the European Commission's official VIES Validation Tool.
- Access your EcoVadis billing settings: Log into your platform dashboard, navigate to Company Profile > Billing Settings, and locate the Tax/VAT Identification Number field.
- Input and save details: Enter your full VAT number including the two-letter country prefix (e.g., DE123456789) without spaces or punctuation. Click Save to trigger automatic validation.
Important Policy Note: EcoVadis cannot retroactively credit or refund French VAT on invoices that have already been finalized and issued. Please ensure your tax details are validated prior to completing subscription payments.