France VAT Registration 2026: TVA Rates, Franchise en Base Thresholds & CA3 Filing
TL;DR: France VAT (TVA) applies at 20% standard rate. Businesses below €85,000 (goods) or €37,500 (services) qualify for the franchise en base de TVA exemption and charge no VAT. Once you exceed these thresholds, France VAT registration is mandatory and you must file CA3 returns with the Direction Générale des Finances Publiques (DGFiP).
Last updated: July 2026
What Is France VAT (TVA) and Who Must Register?
France VAT — taxe sur la valeur ajoutée (TVA) — is a consumption tax governed by the Code Général des Impôts (CGI), Articles 256 to 292B. Any business supplying taxable goods or services in France is potentially liable. Registration becomes compulsory the moment your annual revenue exceeds the franchise en base de TVA threshold for your activity category.
France operates four VAT rates under CGI Article 278:
| Rate | Category | Common Examples |
|---|---|---|
| 20% | Standard | Most goods, services, software, consultancy |
| 10% | Intermediate reduced | Restaurant meals, passenger transport, renovation works |
| 5.5% | Reduced | Food products, books, energy-efficient products, some accommodation |
| 2.1% | Super-reduced | Press publications, certain medicines reimbursed by social security |
The standard 20% rate applies to the vast majority of commercial transactions. The reduced rates are exhaustively listed in CGI Articles 278-0 bis through 281 quater — if your product or service is not explicitly listed, the 20% rate applies by default.
Key registration trigger: Under CGI Article 293B, a French business benefits from the franchise en base de TVA (VAT exemption scheme) until it exceeds the statutory thresholds. The moment it does, it must charge TVA, issue compliant invoices, and file periodic CA3 declarations.
Franchise en Base de TVA: The 2026 Thresholds Explained
The franchise en base de TVA is France's small-business VAT exemption. If your annual turnover stays below the applicable threshold, you do not charge TVA, do not recover input VAT, and your invoices must carry the mandatory mention: "TVA non applicable — article 293B du CGI." This simplifies administration considerably for micro-enterprises and sole traders.
The 2026 thresholds under CGI Article 293B are:
| Activity Type | Main Threshold | Tolerance Threshold |
|---|---|---|
| Supply of goods, sale of food & drink for on-site consumption, accommodation (hotels, B&B) | €85,000 | €93,500 |
| Provision of services (liberal professions, consulting, artisans providing services) | €37,500 | €41,250 |
| Regulated legal/financial professions (avocats, authors, artists) | €50,000 | €55,000 |
The tolerance threshold works as a one-year grace period: if you exceed the main threshold but stay below the tolerance threshold, you remain exempt for the current calendar year. If you breach the tolerance threshold at any point during the year, TVA registration takes effect from the first day of the month in which you exceeded it.
How crossing the threshold works in practice:
- You operate as a consultant (services threshold: €37,500).
- In October 2026, your cumulative revenue hits €38,200.
- You have not yet breached €41,250 (tolerance threshold).
- You remain franchise en base for the rest of 2026.
- From 1 January 2027, you must register for TVA and charge 20% on invoices.
- If instead your revenue hit €42,000 in October 2026, TVA would apply from 1 October 2026.
One important note: the franchise en base also applies to non-resident EU businesses operating under the EU SME VAT exemption scheme introduced by Council Directive 2020/285/EU, which France implemented. EU businesses from other member states can benefit from France's franchise en base thresholds provided they register under the cross-border SME scheme.
French VAT Rates in Detail: Applying the Correct TVA Rate
Applying the correct TVA rate is one of the most common sources of compliance errors. The standard 20% rate is the default; reduced rates require a specific legal basis in the CGI. Misapplying a reduced rate is corrected — with interest — by the DGFiP upon audit.
The 20% standard rate (CGI Article 278) covers: professional services, SaaS and software licences, advertising, most manufactured goods, luxury goods, and new residential property sold by developers.
The 10% intermediate rate (CGI Article 279) covers: restaurant and catering services (excluding alcohol), transport of passengers, agricultural supplies not covered by 5.5%, and major renovation works on residential property over two years old (labour and materials supplied together).
The 5.5% reduced rate (CGI Article 278-0 bis) covers: most food products intended for human consumption, non-alcoholic beverages, books (print and digital equally, following EU alignment), tickets to cultural and sporting events, energy-saving equipment and renovation materials meeting specific environmental criteria.
The 2.1% super-reduced rate (CGI Article 281 quater) is narrow: it applies to press publications registered with the Commission Paritaire des Publications et Agences de Presse (CPPAP) and to medicinal products reimbursable under the social security system.
Practical rate-determination checklist:
- Is the supply explicitly listed in CGI Articles 278-0 bis to 281 quater? → Apply the listed reduced rate.
- Is it a composite supply? → Identify the predominant element and apply its rate.
- No explicit listing? → Apply 20% standard rate.
KARR's TVA rate engine automatically maps product and service codes to the correct French VAT rate — 20%, 10%, 5.5%, or 2.1% — based on the item category you assign. This eliminates manual rate lookup and the risk of a miscoded invoice triggering a DGFiP correction.
France VAT Registration: The Step-by-Step Process
Registering for TVA in France is handled through the DGFiP's online business portal (impots.gouv.fr). French-resident businesses register as part of their business formation through the guichet unique (single business registration window) at INPI. Non-resident businesses register separately with the Service des Impôts des Entreprises Étrangères (SIEE) in Paris.
Registration timeline for French-resident businesses:
- Formation registration at INPI guichet unique: simultaneous with business creation.
- Automatic TVA number issued (format: FR + 2-digit key + 9-digit SIREN = 13 characters).
- If converting from franchise en base: file a declaration of commencement of TVA liability on impots.gouv.fr within 15 days of crossing the threshold.
For non-resident EU businesses:
- Apply via SIEE using form M0 (for companies) or P0 (for individuals).
- A fiscal representative is not required for EU-established businesses but is mandatory for non-EU businesses.
- Processing time: typically 4–8 weeks.
Information required for registration:
- Legal form and articles of incorporation
- Evidence of economic activity in France
- Bank account details (IBAN)
- Proof of identity for legal representatives
Once registered, you receive a numéro de TVA intracommunautaire, which must appear on all invoices issued to VAT-registered customers in France and the EU.
Filing the CA3 TVA Return: Deadlines and Obligations
Once registered for TVA in France, your primary compliance obligation is the CA3 declaration — the monthly or quarterly TVA return filed electronically via impots.gouv.fr. All TVA-registered businesses with annual TVA liability above €4,000 must file monthly. Those below €4,000 annual TVA may file quarterly.
CA3 filing deadlines (monthly filers):
| Business Type | Filing Deadline |
|---|---|
| Companies with fiscal year ending 31 December | 19th–24th of the following month (exact date varies by département) |
| Companies paying by direct debit | 16th of the following month |
| Quarterly filers | 19th of the month following the end of each quarter |
The CA3 return captures:
- Total taxable turnover by TVA rate (20%, 10%, 5.5%, 2.1%)
- Output TVA collected
- Input TVA deductible (purchases, expenses with compliant invoices)
- Net TVA payable or refund credit (crédit de TVA)
A crédit de TVA (where deductible input TVA exceeds output TVA) can be carried forward or, if it exceeds €760, refunded monthly upon request using form CA3 with the remboursement option selected.
Penalties for late filing under CGI Article 1728: a 10% surcharge on TVA due applies immediately upon late filing. Interest on late payment accrues at the statutory rate published annually by the DGFiP under CGI Article 1727.
KARR prepares the CA3 return directly from your recorded transactions — categorising output TVA by rate, matching input TVA to supplier invoices captured via OCR receipt scanning, and generating the return in DGFiP-compatible format. The CA3 summary screen shows your TVA position in real time so there are no end-of-month surprises.
EU Cross-Border Sales and the OSS: What French Businesses Need to Know
For French businesses selling goods or digital services to consumers (B2C) in other EU member states, the One Stop Shop (OSS) scheme — introduced by EU Council Directive 2017/2455/EU and effective since 1 July 2021 — simplifies multi-country VAT compliance significantly.
Below the €10,000 annual EU cross-border B2C threshold (cumulative across all EU member states other than France), a French business may charge French TVA at the applicable rate. Once you exceed €10,000 in EU B2C sales, you must charge VAT at the rate of the customer's member state.
OSS vs. local registration comparison:
| Compliance Route | Registration | Returns | Best For |
|---|---|---|---|
| OSS (Union scheme) | Single registration in France via impots.gouv.fr | Quarterly OSS return covering all EU sales | Businesses selling B2C across multiple EU countries |
| Local VAT registration in each country | Separate registration per country | Each country's return schedule | High-volume sales in specific EU markets |
| Franchise en base (cross-border SME scheme) | Register with DGFiP, notify each member state | No VAT charged or returned | Very small EU cross-border sellers below each country's threshold |
The OSS return is filed quarterly in France and covers all EU B2C sales. TVA collected under OSS is remitted to the DGFiP, which distributes it to the relevant member states. This avoids the need to register for VAT separately in Germany, Spain, Italy, and every other EU country where you have customers.
KARR's multi-currency and multi-jurisdiction engine supports EU OSS compliance — it tracks EU B2C sales by destination country, monitors when you approach the €10,000 threshold, and applies the correct destination-country VAT rate automatically once the threshold is exceeded.
How KARR Handles TVA Compliance for French Businesses
KARR is cloud accounting software built for business owners without an accounting background. For France, KARR applies the correct TVA rate (20%, 10%, 5.5%, or 2.1%) based on item category, tracks franchise en base thresholds in real time, and prepares the CA3 return from your transaction data.
Specific KARR capabilities for French TVA:
- Automatic rate assignment: Maps product/service codes to the correct TVA rate under the CGI framework.
- Franchise en base monitoring: Displays a real-time revenue tracker against your applicable threshold (€37,500 or €85,000) so you know exactly when you are approaching mandatory registration.
- CA3 return preparation: Aggregates output and input TVA by rate, generates a CA3-format summary ready for submission on impots.gouv.fr.
- Receipt OCR: Captures input TVA from supplier invoices using AI receipt scanning — essential for accurate deductible TVA claims.
- OSS threshold tracking: Monitors EU B2C cross-border sales against the €10,000 OSS threshold and flags when destination-country rates must apply.
- Offline-first PWA: Works without internet — critical for businesses in areas with unreliable connectivity or when working across locations.
KARR is priced at Free ($0), Pro ($12/month), and Business ($29/month), making full TVA compliance automation accessible to micro-enterprises and growing businesses alike. KARR was founded by Ovais Shah, a Chartered Accountant (ICAI), Registered Valuer (IBBI), and HarvardX Certified in Strategic Financial Analysis — the product reflects a practitioner's understanding of what compliance actually requires.
France VAT Registration: Key Facts Summary
| Topic | Key Fact |
|---|---|
| Standard TVA rate | 20% (CGI Article 278) |
| Intermediate reduced rate | 10% |
| Reduced rate | 5.5% |
| Super-reduced rate | 2.1% |
| Goods franchise en base threshold | €85,000 per year |
| Services franchise en base threshold | €37,500 per year |
| Legal/financial professions threshold | €50,000 per year |
| EU B2C OSS threshold | €10,000 cumulative across EU |
| CA3 filing frequency (above €4,000 TVA) | Monthly |
| CA3 filing frequency (below €4,000 TVA) | Quarterly |
| Late filing penalty | 10% surcharge (CGI Article 1728) |
| Governing authority | DGFiP (Direction Générale des Finances Publiques) |
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Try KARR FreeFrequently Asked Questions
What is the standard VAT rate in France for 2026?
The standard France VAT rate is 20%, established under CGI Article 278. This applies to most goods and services including software, professional services, advertising, and manufactured goods. Reduced rates of 10%, 5.5%, and 2.1% apply only to categories explicitly listed in the Code Général des Impôts.
What is the franchise en base de TVA threshold in France for 2026?
The franchise en base de TVA thresholds under CGI Article 293B are €85,000 per year for the supply of goods and accommodation, and €37,500 per year for the provision of services. Regulated legal and financial professions (avocats, authors, artists) have a separate threshold of €50,000. Below these limits, you do not charge TVA.
When must a French business register for VAT?
France VAT registration becomes mandatory when your annual turnover exceeds the franchise en base threshold for your activity: €85,000 for goods or €37,500 for services. If you exceed the tolerance threshold (€93,500 or €41,250 respectively) at any point during the year, TVA registration takes effect from the first day of that month.
What does 'TVA non applicable — article 293B du CGI' mean on a French invoice?
This mandatory mention means the issuing business is operating under the franchise en base de TVA exemption. They are below the applicable annual turnover threshold and are therefore not registered for TVA. They cannot charge TVA and cannot recover input TVA on their purchases.
What is a CA3 TVA return and when must it be filed?
The CA3 is France's standard periodic TVA declaration, filed electronically on impots.gouv.fr. Businesses with annual TVA liability above €4,000 file monthly, typically by the 19th–24th of the following month. Those with TVA liability below €4,000 may file quarterly. The CA3 records output TVA collected and input TVA deductible.
Does France VAT apply to digital services sold to French consumers by non-EU businesses?
Yes. Non-EU businesses supplying digital services (software, streaming, e-books) to French consumers (B2C) must account for French TVA at 20%. They can register for the Non-Union OSS scheme in any EU member state to handle TVA obligations across the EU with a single quarterly return, without needing a local French TVA registration.
What is the EU OSS threshold relevant to French businesses?
French businesses selling B2C to customers in other EU member states can charge French TVA on those sales up to a cumulative €10,000 threshold per calendar year across all EU cross-border B2C sales. Once this threshold is exceeded, they must charge the VAT rate applicable in the customer's country, which is most efficiently managed through the OSS scheme registered in France.
Can KARR prepare a French CA3 TVA return automatically?
Yes. KARR prepares the CA3 return by aggregating your output TVA (categorised by rate: 20%, 10%, 5.5%, 2.1%) and input TVA (captured from supplier invoices via AI receipt OCR) directly from your recorded transactions. The CA3 summary is generated in DGFiP-compatible format for submission on impots.gouv.fr, and the franchise en base threshold tracker alerts you before mandatory registration applies.
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