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Knowledge base

I only sell online (e-commerce), does the HBJOAT tax apply?

Short answer

Yes, the HBJOAT tax can apply to sales made online.

The sales channel used, e-commerce site, marketplace, social networks or click-and-collect, does not change the rules of liability.

The tax only applies when the transaction and the product sold fall within its scope.

Is online sales treated differently than in-store sales?

No. Article L. 471-27 of the Code of Taxation on Goods and Services refers to retail sales carried out by any company within the tax territory, without distinction according to the channel used.

Thus, the online sale to the end consumer of a new watch, a new piece of jewelry or another taxable product is subject to the HBJOAT tax under the same conditions as a sale made in a store.

Selling through a marketplace does not automatically transfer the obligation to the platform. The company legally carrying out the sale must be identified.

Which online sales are not taxable?

Not all sales made on an e-commerce site are automatically subject to tax.

Excluded are:

  • sales of second-hand watches and jewelry; ;
  • retail sales of costume jewelry; ;
  • repair services and other service provision; ;
  • wholesale sales between professionals of products bought and then resold as is; ;
  • sales of products not included in the official list of taxable products.

Francéclat confirms that retail sales of costume jewelry and trade between professionals are not taxable.

What happens when the customer is located abroad?

For a company established in France, Francéclat distinguishes:

  • sales to individuals in France, the European Union, the European Economic Area, Great Britain and Northern Ireland, which may be taxable; ;
  • exports to other third territories, which are not taxable.

The treatment also depends on the status of the company, manufacturer or simple retailer, and the location where the operation is carried out.

What if the seller is based abroad?

When a seller established in another country makes a retail sale in France, they may be subject to the tax. Article L. 471-50 stipulates that the person liable for the tax is the one who carries out the transaction that constitutes the taxable event.

When products are shipped from a country outside the European Union, their entry into France may also constitute a taxable import.

In this case, the tax is collected by customs officials upon importation. The liable party depends on the import process and the person designated as the importer or customs declarant. Therefore, it is not necessarily the foreign seller.

Imports of watchmaking articles from Switzerland benefit from a special exclusion.

How do you calculate the taxable base?

The tax is calculated at a rate of 0.19 % on the price excluding taxable transactions, as used to determine the company's turnover.

Shipping costs or other related charges should not be automatically excluded. Their treatment depends on their accounting classification and whether they are included in the transaction price.

If in doubt, it is recommended to ask for confirmation from Francéclat or your accounting firm.

Reporting obligations

The liable company must create an account on teletax.fr, declare its taxable turnover and pay the tax.

The declaration can be monthly, quarterly, or annual depending on the amount of tax due. When the annual tax amount is less than or equal to €20, the company is exempt from payment but is still required to file a declaration.

Official sources

  • Article L. 471-22 of the Code of Taxes on Goods and Services
  • Article L. 471-27 of the Code of Taxes on Goods and Services
  • Article L. 471-39 of the Code of Taxes on Goods and Services
  • Article L. 471-50 of the Code of Taxes on Goods and Services
  • Francéclat and teletax.fr
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