Monaco VAT Guide: French TVA 20% Standard, 10%/5.5% Reduced 2026

Q: Can non-resident businesses reclaim Monaco VAT?

Yes. Non-resident businesses may reclaim VAT through the French VAT refund procedure. EU businesses use the electronic system; non-EU businesses need a French tax representative.

Q: What is the penalty for late VAT filing?

Penalties range from 5% to 40% of VAT due depending on severity. Interest on late payment accrues at 0.2% per month.

Q: Are digital services subject to VAT?

Yes. Digital services to Monaco consumers are subject to French VAT at 20%. Non-EU providers register under French regime; EU providers use OSS system.

Monaco applies French VAT (TVA) at the same rates as France: 20% standard, 10% intermediate, 5.5% reduced, and 2.1% super-reduced. Monaco is part of the EU customs territory but is NOT part of the EU for VAT purposes, creating unique cross-border rules. Here is how VAT works in Monaco in 2026.

VAT in Monaco is governed by the Franco-Monegasque customs union and French VAT law. The Direction des Services Fiscaux (DSF) administers VAT in Monaco, applying French TVA rates and rules. Businesses with annual taxable turnover exceeding €85,800 (goods) or €34,400 (services) must register for VAT. Monaco's unique status means that transactions between Monaco and France are treated as domestic for customs but may have specific VAT implications. Corporate tax overview →

Real-world example: A Monaco retailer sells goods worth €1,000 to a customer in Monaco — VAT at 20% = €200, total invoice €1,200. A Monaco restaurant bills €150 for a meal — VAT at 10% = €15, total €165. A Monaco company exports goods to the US valued at €100,000 — 0% VAT applies (export exemption), allowing input VAT recovery. A Monaco hotel charges €500 per night — VAT at 10% = €50, total €550. Cross-border VAT rules →

VAT Rates in Monaco

20% (standard rate): Most goods and services including retail, electronics, clothing, professional services, and consumer goods
10% (intermediate rate): Food products, transportation, catering, accommodation, renovation work, and cultural events
5.5% (reduced rate): Basic necessities (water, non-processed food), energy supplies, books, disability equipment, and social housing
2.1% (super-reduced): Newspapers, prescription medicines, and certain social/medical products
0% (zero rate): Exports outside the EU customs territory, intra-EU supplies to VAT-registered businesses, and international transport

The French TVA rates apply identically in Monaco. The 10% rate is particularly relevant for Monaco's hospitality and tourism sector, which is a significant part of the economy.

VAT Registration

Mandatory registration: Annual taxable turnover exceeds €85,800 for goods or €34,400 for services
Voluntary registration: Businesses below the threshold may opt to register
Non-resident registration: Foreign businesses supplying taxable goods or services in Monaco must register
French VAT number: Monaco businesses receive a French VAT number (FR prefix) for cross-border transactions

Registration is done through the DSF. Monaco VAT numbers follow the French format. Businesses registered for VAT in Monaco can trade with French and EU businesses using the VAT number for B2B supplies.

VAT Compliance and Filing

Filing frequency: Monthly for most businesses; quarterly for small businesses with annual VAT under €4,000
Filing deadline: By the 19th of the following month (monthly filers)
Payment deadline: Same as filing deadline
Electronic filing: All VAT returns must be filed electronically through the French VAT portal (impots.gouv.fr)
Records: Businesses must maintain VAT invoices, receipts, and accounting records for 10 years

Late filing incurs penalties of 5-40% depending on severity. Late payment accrues interest at 0.2% per month. The DSF conducts regular VAT audits and cross-checks invoices through the French tax authority system.

VAT Invoicing Requirements

Monaco follows French VAT invoicing rules. All invoices must include: seller and buyer details, VAT number, invoice date and number, description, quantity, unit price, VAT rate, VAT amount, and total. Simplified invoices are permitted for small amounts (under €150). Electronic invoicing (e-invoicing) is becoming mandatory for B2B transactions. Invoices must be issued in euros.

Can non-resident businesses reclaim Monaco VAT?

Yes. Non-resident businesses not registered for VAT in Monaco/France may reclaim VAT incurred on business expenses through the French VAT refund procedure. EU businesses use the electronic VAT refund system (article 271 of the French CGI). Non-EU businesses must appoint a tax representative in France for VAT refund claims.

What is the penalty for late VAT filing?

Late VAT filing penalties range from 5% (standard late filing) to 40% (deliberate concealment) of the VAT due. Interest on late payment accrues at 0.2% per month. Repeated violations may result in increased penalties and business registration suspension.

Are digital services subject to VAT?

Yes. Digital services provided by non-resident companies to consumers in Monaco are subject to French VAT at 20%. Non-EU digital service providers must register under the French VAT regime. EU providers use the One Stop Shop (OSS) system for B2C digital services.