VAT
Definition
Value Added Tax — an indirect tax collected by the company and paid to the State. The standard rate in France is 20%. Micro-enterprises below a certain revenue threshold are exempt from VAT.
Detailed explanation
For a freelancer in France in 2026, 3 VAT regimes exist. Base exemption (article 293B CGI): if revenue < €36,800 per year for services, no VAT collected, mandatory mention on invoices 'VAT not applicable, article 293B of the CGI'. Simplified real regime: VAT collected and declared quarterly or annually. Normal real regime: monthly declaration. The switch occurs automatically when the threshold is exceeded, and there is an increased tolerance threshold. Advice: from €30k in revenue, prepare the switch (adjust rates, inform clients, configure accounting).
Concrete example
Micro-enterprise freelancer at €34k revenue in 2025: no VAT. Reaches €38k in 2026: switches to the real regime on 1 January 2027, must charge 20% VAT from 1 January.
Related terms
Invoice
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