France VAT Registration 2026: TVA Rates, Franchise en Base Thresholds & CA3 Filing
TL;DR: France VAT (TVA) applies at 20% standard rate. Businesses selling goods stay exempt under the franchise en base de TVA below €85,000 turnover; service providers stay exempt below €37,500. Once you exceed either threshold you must register, charge TVA, and file the CA3 return with the DGFiP.
Last updated: July 2026
What Is the France VAT (TVA) Rate in 2026?
France applies a 20% standard TVA rate on most goods and services sold within French territory. Three reduced rates — 10%, 5.5%, and 2.1% — apply to specific categories such as food, books, medicine, and passenger transport. There is no change to these rates for 2026.
TVA (Taxe sur la Valeur Ajoutée) is France's value-added tax, governed by the Code Général des Impôts (CGI) and administered by the Direction Générale des Finances Publiques (DGFiP). It applies to taxable persons making taxable supplies of goods or services in France, as well as imports and intra-EU acquisitions above applicable thresholds.
France TVA Rate Summary
| Rate | Category | Common Examples |
|---|---|---|
| 20% | Standard | Most goods and services, electronics, clothing, professional services |
| 10% | Reduced | Restaurant meals, passenger transport, renovation works on older housing |
| 5.5% | Reduced | Food products, books, e-books, energy-efficient home improvements, live entertainment |
| 2.1% | Super-reduced | Certain medicines reimbursed by social security, press publications |
When you are uncertain which rate applies — for example, a mixed product bundle or a digital service — the DGFiP's official doctrine published on impots.gouv.fr is the authoritative reference. KARR automatically maps your product and service categories to the correct TVA rate, reducing the risk of a mis-rated invoice that triggers a DGFiP audit.
What Is the Franchise en Base de TVA?
The franchise en base de TVA is a legal exemption that allows small businesses to operate without charging or remitting TVA, provided their annual turnover stays below statutory thresholds: €85,000 for goods sales and €37,500 for services. Businesses under the franchise neither charge TVA nor recover input TVA.
This exemption is not optional once you exceed the threshold — you are required by law to register and begin applying TVA from the first day of the month in which you exceeded the limit (or immediately if you exceed the upper tolerance threshold). Invoices issued while under the franchise must carry the notice: "TVA non applicable — article 293 B du CGI."
Franchise en Base Thresholds 2026
| Business Type | Exemption Threshold | Upper Tolerance Threshold |
|---|---|---|
| Sales of goods, supply of accommodation, food and drink | €85,000 | €93,500 |
| Provision of services (general) | €37,500 | €41,250 |
| Lawyers, authors, performing artists (specific regulated professions) | €50,000 | €55,000 |
Important note on the 2025 reform proposal: A single unified €25,000 franchise-en-base threshold was proposed for 2025 to harmonise French rules with the EU SME VAT exemption directive. That proposal was suspended and was not adopted. The €85,000 and €37,500 thresholds shown above remain in force for 2026.
If your turnover in one year exceeds the main threshold but stays below the upper tolerance, you retain the exemption for that year. If you breach the upper tolerance at any point during the year, you must register for TVA immediately — not at year-end.
How Does France VAT Registration Work?
France VAT registration requires submitting an application through the DGFiP's online portal (impots.gouv.fr) or via a Centre de Formalités des Entreprises (CFE). Once registered, you receive a numéro de TVA intracommunautaire in the format FR + 2 check digits + 9-digit SIREN number.
Step-by-Step Registration Process
- Determine your obligation — check whether your turnover has crossed the franchise en base threshold for your activity type.
- Register online with the DGFiP via your professional space (Espace Professionnel) on impots.gouv.fr, or through your CFE.
- Receive your TVA number — typically issued within a few days of a complete application.
- Issue correct invoices — all invoices from your registration date must include your TVA number, the applicable rate, and the TVA amount.
- Set up your accounting — record input TVA on purchases and output TVA on sales separately from the date of registration.
- File the CA3 return — monthly or quarterly, depending on your TVA liability level.
Non-established foreign businesses making taxable supplies in France must register with the Direction des Impôts des Non-Résidents (DINR) in Noisy-le-Grand. There is no minimum threshold for non-established businesses — registration is required from the first taxable supply.
What Are the CA3 Return Filing Obligations?
Registered TVA businesses in France file the CA3 declaration — either monthly or quarterly — with the DGFiP. Monthly filing applies when annual TVA liability exceeds €4,000; businesses below this threshold may file quarterly. The CA3 is filed and payment is made electronically through the DGFiP's professional portal.
Key CA3 Filing Deadlines
| Filing Frequency | Who It Applies To | Submission Deadline |
|---|---|---|
| Monthly | Annual TVA liability above €4,000 | Between the 15th and 24th of the following month, depending on business size and department |
| Quarterly | Annual TVA liability at or below €4,000 | By the 19th of the month following the quarter |
| Annual (CA12) | Very small businesses with minimal TVA — simplified regime | Specific annual deadline with quarterly advance payments |
Late filing or payment attracts a 10% surcharge on the TVA due plus interest at the statutory rate set by the DGFiP. KARR prepares CA3 returns directly from your transaction data — sales, purchases, and imports are automatically allocated to the correct CA3 boxes, so you review and submit rather than rebuild from spreadsheets.
EU Distance Selling, OSS, and Cross-Border TVA
French businesses selling goods or digital services to consumers in other EU member states must apply the One Stop Shop (OSS) regime once total cross-border B2C sales exceed €10,000 per calendar year across all EU countries combined. Below €10,000, French TVA applies to all EU B2C sales.
The OSS (guichet unique) allows you to report and pay VAT due in all EU member states through a single quarterly return filed with the DGFiP in France, avoiding separate VAT registrations in each destination country. Registration for OSS is done through impots.gouv.fr.
For imports of low-value goods (consignments valued at or below €150) sold directly to EU consumers, the Import One Stop Shop (IOSS) applies. Businesses selling goods above €150 or using standard customs clearance follow standard import VAT rules.
KARR's multi-currency and multi-country architecture tracks EU B2C sales by destination country and flags when you approach the €10,000 OSS threshold, so you can register before the obligation triggers rather than after.
France B2B E-Invoicing Mandate 2026–2027
France is rolling out mandatory B2B e-invoicing for VAT-registered businesses through a phased programme managed by the DGFiP. Large enterprises and mid-sized companies must be able to receive structured e-invoices from September 2026; the obligation to issue e-invoices follows on a staggered schedule extending through 2027 for smaller businesses.
E-invoices must be transmitted through a registered Plateforme de Dématérialisation Partenaire (PDP) or the public portal Chorus Pro (already mandatory for B2G invoices). The structured formats accepted include Factur-X (a hybrid PDF/XML format), UBL, and CII.
Businesses should:
- Confirm whether their accounting software can generate Factur-X or UBL files
- Register with a PDP before their applicable start date
- Update invoice templates to include all mandatory fields (SIREN, TVA number, payment terms, delivery address)
KARR generates Factur-X-compliant e-invoices directly from your sales workflow, ensuring your outbound invoices meet DGFiP e-invoicing requirements from day one of your obligation date.
How France TVA Compares With Other EU Countries
Understanding where France sits relative to its EU neighbours helps businesses operating across borders structure their pricing and compliance correctly.
| Country | Standard VAT Rate | Key Registration Threshold | Corporate Tax Rate |
|---|---|---|---|
| France | 20% | €85,000 (goods) / €37,500 (services) | 25% |
| Germany | 19% | €25,000 prior year / €100,000 current year (Kleinunternehmer) | ~30% (15% + surcharge + trade tax) |
| Netherlands | 21% | €20,000 (KOR small business scheme) | 19% up to €200,000 / 25.8% above |
| Spain | 21% | No threshold — register before first taxable sale | 25% |
| Italy | 22% | €85,000 (regime forfettario) | 24% IRES + ~3.9% IRAP |
| Portugal | 23% | €15,000 | 21% |
| Ireland | 23% | €85,000 (goods) / €42,500 (services) | 12.5% trading (15% large groups under Pillar Two) |
France's 20% standard rate is among the lower standard rates in the EU. Its two-tier registration threshold — higher for goods, lower for services — is a structural feature that catches service businesses earlier than goods-based businesses.
How KARR Handles French TVA Compliance
KARR is cloud accounting software built for business owners who need to stay compliant without becoming tax specialists. For French businesses, KARR applies the correct TVA rate to each invoice line based on your product/service category, prepares the CA3 return from your live transaction data, and generates Factur-X e-invoices for the DGFiP mandate.
Specific KARR capabilities for France TVA:
- Automatic TVA rate mapping — 20%, 10%, 5.5%, and 2.1% rates assigned by product/service type
- Franchise en base monitoring — dashboard alert when cumulative turnover approaches €85,000 or €37,500
- CA3 return preparation — output TVA, input TVA, and net liability calculated automatically from posted transactions
- Factur-X e-invoice generation — structured PDF/XML invoices ready for PDP transmission
- OSS threshold tracking — cumulative EU B2C sales monitored against the €10,000 trigger
- Bank feed auto-categorisation — AI categorises imported bank transactions to the correct TVA treatment
- "What Happened?" guided wizard — non-accountants record sales, purchases, and expenses correctly without needing to know double-entry bookkeeping
KARR's pricing starts at $0 (Free), with Pro at $12/month and Business at $29/month — making full TVA compliance accessible at every business size.
Frequently Asked Questions
FAQ
Q: At what turnover must I register for TVA in France? A: You must register when your annual turnover exceeds €85,000 if you primarily sell goods or supply accommodation and food, or €37,500 if you primarily provide services. Certain regulated professions (lawyers, authors, performing artists) have a separate €50,000 threshold. Non-established foreign businesses have no threshold and must register from their first taxable supply in France.
Q: Is the franchise en base de TVA automatic? A: Yes, but you must actively monitor your turnover. The exemption applies automatically if you stay below the threshold, but you are legally responsible for tracking your turnover and registering as soon as you exceed it. Your accountant or your KARR dashboard should flag the approach to the threshold well in advance.
Q: What happens if I accidentally exceed the franchise en base threshold? A: If you exceed the main threshold (€85,000 or €37,500) but stay below the upper tolerance (€93,500 or €41,250), you retain the exemption for that calendar year but must register and apply TVA from 1 January of the following year. If you breach the upper tolerance at any point, you must register immediately — from the first day of the month of the breach.
Q: Can I opt into TVA voluntarily even if I am below the franchise threshold? A: Yes. Businesses below the franchise en base thresholds can voluntarily opt to be TVA-registered. This is often advantageous if your customers are themselves TVA-registered (they can recover the TVA you charge) or if you have significant input TVA to recover on purchases.
Q: How do I file my CA3 TVA return in France? A: CA3 returns are filed electronically through the DGFiP's Espace Professionnel on impots.gouv.fr. Monthly filers submit between the 15th and 24th of the month following the reporting period (the exact date depends on business size and department). Quarterly filers submit by the 19th of the month following the quarter. Payment is made simultaneously.
Q: What is the OSS and when does it apply to French businesses? A: The One Stop Shop (OSS) applies when a French business's total B2C sales of goods or digital services to consumers in other EU member states exceeds €10,000 in a calendar year. Once over this threshold, the VAT rate of the buyer's country applies, and you report and pay all EU VAT through a single quarterly OSS return filed with the DGFiP — rather than registering separately in each country.
Q: When does mandatory B2B e-invoicing apply to my French business? A: The French B2B e-invoicing mandate is being phased in from 2026 to 2027. Large enterprises and mid-sized businesses must be able to receive structured e-invoices from September 2026; the obligation to issue e-invoices follows on a staggered schedule. Check the DGFiP's published phased rollout dates for the category that applies to your business size.
Q: Does KARR support French TVA and CA3 filing? A: Yes. KARR applies the correct TVA rate (20%, 10%, 5.5%, or 2.1%) to each invoice line, prepares the CA3 return from your posted transactions, generates Factur-X e-invoices for the DGFiP mandate, and monitors your cumulative turnover against the franchise en base thresholds. The guided "What Happened?" wizard means you don't need accounting training to keep your TVA records accurate.
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Try KARR FreeFrequently Asked Questions
At what turnover must I register for TVA in France?
You must register when your annual turnover exceeds €85,000 if you primarily sell goods or supply accommodation and food, or €37,500 if you primarily provide services. Certain regulated professions (lawyers, authors, performing artists) have a separate €50,000 threshold. Non-established foreign businesses have no threshold and must register from their first taxable supply in France.
Is the franchise en base de TVA automatic?
Yes, but you must actively monitor your turnover. The exemption applies automatically if you stay below the threshold, but you are legally responsible for tracking your turnover and registering as soon as you exceed it. Your accountant or your KARR dashboard should flag the approach to the threshold well in advance.
What happens if I accidentally exceed the franchise en base threshold?
If you exceed the main threshold (€85,000 or €37,500) but stay below the upper tolerance (€93,500 or €41,250), you retain the exemption for that calendar year but must register and apply TVA from 1 January of the following year. If you breach the upper tolerance at any point during the year, you must register immediately from the first day of the month of the breach.
Can I opt into TVA voluntarily even if I am below the franchise threshold?
Yes. Businesses below the franchise en base thresholds can voluntarily opt to be TVA-registered. This is often advantageous if your customers are themselves TVA-registered (they can recover the TVA you charge) or if you have significant input TVA to recover on purchases and expenses.
How do I file my CA3 TVA return in France?
CA3 returns are filed electronically through the DGFiP's Espace Professionnel on impots.gouv.fr. Monthly filers submit between the 15th and 24th of the month following the reporting period. Quarterly filers submit by the 19th of the month following the quarter. Payment is made simultaneously with the return.
What is the OSS and when does it apply to French businesses selling across the EU?
The One Stop Shop (OSS) applies when a French business's total B2C sales of goods or digital services to consumers in other EU member states exceeds €10,000 in a calendar year. Once over this threshold, the VAT rate of the buyer's country applies, and you report and pay all EU VAT through a single quarterly OSS return filed with the DGFiP — rather than registering separately in each country.
When does mandatory B2B e-invoicing apply to my French business?
The French B2B e-invoicing mandate is being phased in from 2026 to 2027. Large enterprises and mid-sized businesses must be able to receive structured e-invoices from September 2026, with the obligation to issue e-invoices following on a staggered schedule. Check the DGFiP's published phased rollout dates for the category that applies to your business size.
Does KARR support French TVA and CA3 filing?
Yes. KARR applies the correct TVA rate (20%, 10%, 5.5%, or 2.1%) to each invoice line, prepares the CA3 return from your posted transactions, generates Factur-X e-invoices for the DGFiP B2B mandate, and monitors your cumulative turnover against the franchise en base thresholds of €85,000 and €37,500.
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