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France VAT Compliance: An Overview for Businesses

VAT compliance in France is essential but complex. The country’s VAT (or Taxe sur la valeur ajoutée – TVA) rates are not simple and must be adhered to in order to avoid penalties, fines and interest charges.

France uses a multi-tier system with specific rates that apply to applicable goods and services. Complexity arises when deciphering the nature of the product or service. For example, different VAT rates apply for food that is prepared or a basic necessity.

This page provides an overview of France VAT compliance, including e-invoicing rules, registration requirements and additional details.

Table of contents

1. General VAT information for France 2. VAT rules in France 3. Requirements to register for VAT in France 4. Invoicing requirements in France 5. Penalties for non-compliance with VAT in France 6. Solutions for VAT compliance in France 7. FAQ 8. Additional resources

General VAT information for France

VAT filing in France depends on the business’s annual turnover and, therefore, the amount of VAT liability.

Periodic VAT Return
Monthly
This is the default filing frequency for businesses with a high annual turnover (e.g., above €818,000 for goods or €247,000 for services)
Quarterly
Businesses with an annual VAT liability of less than €4,000 may file quarterly
Annually
For SMEs with moderate turnover and a total annual VAT liability below €15,000, returns can be filed annually using the CA12 form, with two advance payments made during the year
VAT Rates
20% (standard)
10%
(reduced: restaurant and catering services, prepared food, passenger transport, hotel accommodation, renovation works)
5.5%
(reduced: essential goods such as basic/unprepared food products, water supplies, educational supplies, solar panel installation, and disability equipment)

VAT rules in France

VAT in French territories

French VAT applies in French territories, including:

  • Corsica
  • Guadeloupe
  • Martinique
  • Réunion
  • Monaco

It does not apply in other French territories, such as:

  • French Guiana
  • Mayotte
  • Saint-Martin
  • Saint-Barthélémy
  • Saint-Pierre-et-Miquelon
  • New Caledonia
  • French Polynesia
  • French Southern and Antarctic Lands
  • Wallis and Futuna

French territories’ VAT is complex, and different rules and rates apply:

  • Guadeloupe, Martinique and Réunion: These territories are considered outside the EU VAT area for goods; however, a specific VAT system with different rates (including a standard rate of 8.5%) is in effect
  • Monaco: The same VAT rules and rates apply as in mainland France
  • French Guiana and Mayotte: Exempt from VAT

France e-invoicing

Like many European countries, France is phasing in an e-invoicing mandate for businesses through a central platform and connected service providers, effective 1 September 2026.

As of this date, all established companies must be compliant with receiving e-invoices, and large and medium-sized businesses must be able to issue e-invoices and comply with e-reporting for cross-border B2B transactions and B2C transactions.

Following on from this, smaller businesses must also comply with the e-invoicing and e-reporting mandate as of 1 September 2027.

Businesses in France will be required to use approved platforms to submit e-invoices known as Plateformes Agréées (PAs), moving away from the government’s public invoicing portal (PPF).

Find out more about France e-invoicing.

Requirements to register for VAT in France

Businesses established in France—also known as resident businesses—must register for VAT if their annual turnover exceeds:

  • €85,000 for the sale of goods and accommodations
  • €37,500 for services

The process of VAT registration in France requires the submission of several documents, including proof of business activity, articles of association (statutes) and a completed Form M0.

Invoicing requirements in France

There are several rules and requirements for invoicing in France, including:

  • Invoices must have a unique number
  • Invoices must include both seller and customer information, including names, addresses and VAT identification numbers (if applicable)
  • Invoices must include transaction details, including date of issue, supply date, description of goods or services, taxable amount, VAT rates and total VAT
  • Invoices must include the payment date and interest rate for late payments or penalties
  • Invoices must be issued in French, but a translation can be provided to the tax authority if the invoice is in a different currency
  • Invoices must be stored for a minimum of 10 years

There are also upcoming e-invoicing mandate requirements to consider, including (but not limited to):

  • Using the new e-invoicing and e-reporting system for B2B transactions
  • Submitting e-invoices in a structured electronic format compliant with the European Standard EN 16931, such as UBL 2.1, UN/CEFACT CII or Factur-X

The French e-invoicing reform will introduce significant changes in the landscape of VAT compliance in France, requiring established and non-established VAT registered businesses to comply with the new CTC mandate.

Penalties for non-compliance with VAT in France

In France, penalties, fines and even criminal prosecution can be levied against companies and businesses that submit VAT returns incorrectly or late, as well as those that fail to pay or commit fraud.

Financial penalties

  • Late submission penalties start at 10% of the VAT due and increase to 40% if the return is filed late following a reminder
  • Non-payment or late payment incurs a 5% surcharge along with 0.20% interest per month
  • Incorrect VAT returns are subject to a 40% penalty charge
  • Severe cases like fraud can lead to an 80% penalty charge
  • Non-compliance with invoicing rules is penalised at €15 per error or omission on invoices. Total penalties per invoice cannot exceed 25% of the invoice amount

Criminal penalties

VAT fraud or evasion can result in criminal charges of up to five years in prison for general tax offences, and seven years for more serious offences that include falsified documents or organised crime.

Solutions for VAT compliance in France

France’s multi-tier VAT rate system and upcoming e-invoicing mandate may seem daunting, but Sovos is here to help.

As your compliance partner, we can handle your tax obligations, allowing you to focus on your business.

Get in touch with us

FAQ

The standard VAT rate in France is 20%, with two reduced rates of 10% and 5.5%, a super-reduced rate of 2.1% and 0% for exemptions.

For French businesses that sell goods or services outside the European Union, French VAT rates do not apply, and you are not required to charge or pay VAT on these items.

However, exporting goods or services to countries outside of the EU will require a responsibility to provide the French tax authorities with official customs documents or proof of experts to justify the VAT exemption.

Key exemptions from VAT in France are goods and services related to healthcare and social welfare, education, financial and insurance services, real estate, non-profit organisations, gambling and betting, among others.

In France, submission and payment deadlines typically fall between the 15th and 24th of each month following the reporting period.

The exact date is dependent on the establishment status of the business, whether it is in the EU, and whether the business qualifies for a monthly or quarterly submission.

Additional resources

France E-invoicing

Go deeper on e-invoicing obligations in France.
Read here

France’s E-Invoicing Reform

Learn about the evolving landscape of e-invoicing reform in France.
Read here
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