- Small businesses with prior-year turnover below set thresholds can use the VAT exemption regime, meaning they do not charge VAT but also cannot deduct VAT on purchases.
- Eligibility thresholds are 91,900 EUR for goods sales, on-site consumption, or accommodation, and 36,800 EUR for other services.
- The exemption is lost if current-year turnover exceeds 101,000 EUR for sales activities or 39,100 EUR for services, with VAT due from the first day of the month the threshold is exceeded.
- Businesses under this regime must state “VAT not applicable, article 293 B of the CGI” on invoices and not charge or deduct VAT.
- Eligible businesses may opt into the VAT system voluntarily to reclaim VAT on purchases and investments; this option lasts two years and renews automatically.
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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