Depending on the type and size of the company, you may be subjected to different VAT tax regimes that affect the timing of declarations and payments of this tax.
There are three VAT regimes to which a business may be subject:
- the franchise regime based on VAT, which exempts from the payment of VAT
- the simplified real regime, for which companies must file an annual VAT return
- the normal real regime, for which companies must make monthly VAT declarations.
Different VAT tax regimes in France
Public
France
Author: Kristina Dosen
Category:
Fiscal subject related
Views:
6596
Content accuracy validation date:
20.12.2022
Content accuracy validation time:
08:23h
- VAT-based franchise regime
exempts companies from the declaration and payment of VAT on the services or sales they make. To be able to benefit from the exemption regime based on VAT, your company must have an annual turnover, excluding taxes, of less than €85,800.
This regime allows you not to pay VAT and, therefore, not to make a VAT declaration.
In return, if you benefit from it, you cannot invoice VAT to your customers, or practice VAT deduction on the goods or services acquired for the needs of your activity.
You must also include the mention of "VAT not applicable, article 293 B of the General Tax Code (CGI) on your invoices sent to your customers. ".
- simplified real regime
In the case of the simplified real regime, your company is taxed on the basis of the profits it makes. The simplified real regime makes it possible to reduce your reporting and payment obligations, with a single declaration per year.
To be able to benefit from the simplified real regime, your company must have an annual turnover including:
- between € 85,800 and € 818,000 for goods delivery activities, sales to be consumed on-site, and accommodation services.
- between € 34,400 and € 247,000 for service activities
- companies must also respect an annual VAT of less than €15,000.
- Normal real regime
All companies can benefit from this scheme, but it comes with obligations. In addition, the accounting of the company subject to the normal real regime is more precise than for the simplified real regime.
The companies automatically covered by the normal tax regime have an annual turnover, excluding tax, of more than:
- € 818,000 for retail and accommodation activities
- € 247,000 for services
- as well as companies that declare more than €15,000 in VAT.
For this scheme, the VAT collected must be declared and paid each month online from your professional space on impots.gouv.fr.
Other news from France
New document was uploaded: Guide for transition to E Reporting and E-Invoicing in France
France
Author: Vukašin Santo
This document provides a structured and formal overview of the mandatory e-Invoicing and e Reporting framework in France. The reform represents a major transformation of the VAT reporting ecosystem and introduces structured electronic invoicing and digital transaction reporting for VAT control purposes. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
France has clarified the scope and reporting rules for mandatory electronic transaction reporting.
France
Author: Vukašin Santo
France has clarified the practical application of its mandatory VAT transaction e-reporting system, confirming that B2C sales will be reported through daily aggregated VAT data while certain cross-border B2B transactions will require invoice-level reporting. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
France Publishes Updated Guidance on Mandatory e-Reporting (September 2025)
Public
France
Author: Vukašin Santo
France
Author: Vukašin Santo
France has issued updated guidance on its upcoming mandatory transaction e-reporting system, clarifying that businesses must electronically transmit VAT data for B2C transactions (aggregated daily totals) and international B2B transactions subject to French VAT. Reporting frequency will depend on the company’s VAT regime, and while B2C reporting excludes customer details and transaction-level data... Read more
France Holds Major Press Conference to Unveil National e-Invoicing and e-Reporting Reform
Public
France
Author: Vukašin Santo
France
Author: Vukašin Santo
France has announced a major reform introducing mandatory electronic invoicing and e-reporting, requiring structured digital invoices and automated reporting to tax authorities. From September 1, 2026, all businesses must be able to receive e-invoices (with large and medium companies also required to send them), while by September 1, 2027 the obligation will extend to all companies, supported by a... Read more
Do the French Finance Law 2026 Amendments Bring Self-Attestation as a Possibility To Prove Software Compliance?
France
Author: Tara Nedeljković
France’s Finance Law for 2026 (Article 125), published in the Journal Officiel on 19 February 2026, amends Article 286 of the French General Tax Code to reintroduce self-certification as a valid method for proving POS software compliance, alongside certification by accredited bodies such as Infocert or LNE. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
New document was uploaded: Tax Audit in France: Current state and upcoming changes
France
Author: Vukašin Santo
The purpose of this document is to explain rules regarding the tax audit regime in France, what the central point of a tax audit is, what the procedure is, and also what will change with new E-invoicing and E-reporting obligations. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
France: New Tax Law Amendment Reignites Debate on Software Self-Certification
France
Author: Vukašin Santo
A new law adopted on 2 February amends the French Code général des impôts, introducing changes to Article 125 that allow compliance of accounting and cash register software to be demonstrated through an individual publisher’s attestation, issued in accordance with a model defined by the tax administration. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login