When I read that Monaco is considered part of France for VAT purposes. I got curious how does it work in the context of digital goods/services, you know selling remotely. I asked Chatgpt then it made me more confuse. So I'm asking here to crosscheck. Following is the text generated by chatgpt.

1. Monaco is NOT part of the EU VAT area for EU-established sellers

It uses French VAT rules, but legally it is not an EU VAT territory under Directive 2006/112/EC.

EU law explicitly lists the VAT territory of the EU.
Monaco is not on that list.

The French VAT territory is defined in Article 5 of the VAT Directive and Monaco is not included.
Monaco is only included in French domestic VAT law, not in EU VAT territory law.

Therefore:

• For Union OSS, the “Member State of consumption” must be an EU Member State VAT territory.
• Monaco is not one, so it cannot appear in your Union OSS return.

2. Why Monaco is treated as France in Non-Union OSS

The EU Implementing Regulation (Article 57f) states:

“For the purposes of determining the place of supply of services under the Non-Union scheme, the VAT territory of France includes the Principality of Monaco.”

This provision only exists for the Non-Union scheme, not Union OSS.

That is why:

• Non-EU suppliers may report “Monaco” under FR in the Non-Union OSS.
• EU suppliers cannot, because they must use Union OSS, which only covers Member States.

3. Official EU Commission confirmation

EU Commission “OSS Guide” states unambiguously:

“The Union scheme covers supplies of services and distance sales of goods to non-taxable persons in other Member States.”

Monaco is not a Member State → therefore not eligible.

Non-Union scheme states:

“The VAT territory of France includes the Principality of Monaco.”

This special rule does not exist in Union OSS.

4. Final summary

The statement you provided confuses French domestic VAT law with EU VAT territory law, which are different.