TMT 2025

FRANCE Law and Practice Contributed by: Clara Hainsdorf, Bertrand Liard, Saam Golshani and Guillaume Vitrich, White & Case LLP

1.3 Taxation of Digital Advertising As mentioned in 1.2 Digital Economy Taxation , DST is applied to revenues generated by certain digital services, including digital advertising plat - forms, and this mainly targets large companies. A specific tax applies to revenues generated by the broadcasting of advertising and sponsor - ship messages on video streaming. This tax is levied at a rate of 5.15% on the portion of pre- tax advertising income exceeding EUR100,000 received within a calendar year. The rate is raised to 15% for the portion of taxable advertising and sponsorship fees relating to access to porno - graphic content or incitement to violence on the audiovisual content access service. In cases where the platform is free of charge and hosts user-generated video content, allowing it to be shared and exchanged within communities of interest, the tax base is reduced by 66%. This reduction applies to streaming platforms that integrate social networking features, such as messaging services for users. In France, all the specific taxes mentioned about digital advertising revenues must be liquidated, declared and paid to the Direction générale des Finances publiques . To ensure compliance with tax law regarding digital advertising, companies must establish robust tax management and reporting systems. This includes the accurate collection of revenue data generated in each jurisdiction, the correct application of local taxes, and the timely submis - sion of tax returns. 1.4 Consumer Protection The French Consumer Code applies to the TMT sector and includes the new regulatory frame - work set by the DSA, the SREN Law and its implementing decree.

tions if they carry out transactions with custom - ers located in France, including non-resident businesses offering digital products. The stand - ard VAT rate in France is set at 20%. Businesses are required to register for VAT as soon as they make their first business-to-consumer (B2C) sale in France. In November 2024, EU member states unanimously agreed on the VAT in the Digital Age (ViDA) proposal, which seeks to update the EU VAT system with three main components: • e-invoicing and digital reporting; The current lack of an internationally co-ordi - nated approach may lead to overlapping taxes, possible double taxation and the administrative burden of applying multiple digital taxes. To ensure compliance with tax regulations, com - panies selling digital products and services must understand their obligations – they must: • determine where they have obligations by cross-checking customer locations, product taxability and registration thresholds in each country; • monitor tax exposure and register in exposed jurisdictions; • platform economy; and • single VAT registration. • identify transactions that require tax collection and apply the correct rates to those invoices; • file tax returns; • make payments; and • keep records. French tax law also introduces additional spe - cific obligations for operators of online platforms that act as intermediaries, which must submit a user’s activity report to the French tax authorities with data about the users.

CHAMBERS.COM