- The BOFiP document explains France’s VAT “franchise en base” scheme, which exempts eligible businesses established in France (or with a permanent establishment there) from charging VAT and filing VAT returns.
- For 2026, the thresholds are €85,000 / €93,500 for goods and housing, and €37,500 / €41,250 for services.
- Staying between the standard and increased thresholds keeps the exemption for the current year, but VAT applies the following year; exceeding the increased threshold triggers VAT immediately from the first day of that month.
- Some activities are excluded, such as certain real estate operations, agricultural operations under the simplified scheme, and intra-community deliveries of new vehicles.
- Exempt businesses must note “TVA non applicable, article 293 B du CGI” on invoices and cannot deduct input VAT, though they may opt into VAT voluntarily for two years, renewable tacitly.
Source: bofip.impots.gouv.fr
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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