France VAT Reform: Main Changes for Businesses under the New CIBS

France will transfer VAT rules from the General Tax Code (CGI) to the new Code of Taxes on Goods and Services (CIBS) from September 1, 2026, modernizing the legal structure without changing core VAT principles. While the reform mainly reorganizes legislation for greater clarity and consistency, businesses will need to update systems and processes during a transitional period where both frameworks temporarily coexist.

From 1 September 2026, VAT rules currently set out in the General Tax Code (CGI) will be transferred to a new legal framework: the Code of Taxes on Goods and Services (CIBS).

This “non-negotiable” reform modernises and simplifies the structure of VAT law without changing its content. Its goal is to make VAT rules more transparent, consistent, and accessible for businesses and practitioners. It incorporates recent CJEU case law but does not alter core VAT principles, taxation rules, or deduction mechanisms.

What Changes and What Remains the Same

• Unchanged: VAT principles, taxation rules, and deduction mechanisms.
• Changed: Structure, organisation, and article numbering of the VAT legislation.

Transitional Provisions

To ensure a smooth transition:

• Transactions before 1 September 2026 remain governed by the CGI.
• Transactions from 1 September 2026 fall under the CIBS, leading to a temporary coexistence of both frameworks (especially in audits and disputes).
• Existing administrative doctrine (BOFiP) and rulings based on the CGI remain useful references, but their enforceability under CIBS will be clarified by the tax authorities.
• Rulings obtained under the CGI stay valid for the situations they cover, subject to alignment with the new CIBS framework.
• The administration will publish CGI/CIBS correspondence tables to help identify equivalences between old and new articles.
• Current regulatory texts remain applicable and will be gradually integrated into the CIBS.

Timetable

• 18 February – 15 April 2026: Public consultation on transitional provisions.
• 1 September 2026: Entry into force of the CIBS for VAT.
• 2027: Finalization and ratification.

Impact on Businesses

The reform requires operational adjustments, including:

• Updating ERP and tax software
• Reviewing internal VAT procedures
• Adapting contracts and tax clauses
• Training teams

It also brings opportunities: clearer VAT rules, simplified access to tax information, and strengthened legal certainty.