VAT Measures in France’s 2026 Draft Finance Bill (PLF 26)

The PLF 2026 introduces key adjustments to VAT thresholds, e-invoicing obligations, and detaxation rules, aiming to modernize compliance and enhance fraud prevention.

Here are the main VAT-related points from the document:

VAT Franchise Threshold Adjustments (PLF 26, Art. 25)

• New thresholds: Raised to €37,500 (previous year) / €41,250 (current year) for general activities.
• Real estate works: Maintains lower thresholds at €25,000 / €27,500.
• Legal certainty: 2025 thresholds remain valid throughout the year for eligible businesses.
• Exclusion: Royalties subject to withholding tax (e.g., author’s rights) are excluded from threshold calculations.
• Effective date: 1 January 2026.

E-Invoicing & E-Reporting Obligations (PLF 26, Art. 28)

• No public exchange platform: Confirms removal of the public invoice exchange offer.
• Platform use: Taxpayers must use an approved platform for issuing and receiving e-invoices.
• Sanctions updated:
  • €50 fine per missing e-invoice (up from €15), capped at €15,000/year.
  • €500 fine per missing data transmission (up from €250), also capped.
  • New penalties for not using approved platforms: €500–€1,000 every 3 months.
  • Platform non-compliance may lead to deregistration.
• Chorus Pro: Designated platform for public sector entities.

️ Detaxation Operators & Export Proof (PLF 26, Art. 17)

• Stricter obligations: Enhanced financial guarantees and export documentation requirements.
• Illegal activity: Operating without approval after withdrawal is now explicitly sanctioned

Source PwC

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