Depending on the type and size of the company, you may be subjected to different VAT tax regimes that affect the timing of declarations and payments of this tax.
There are three VAT regimes to which a business may be subject:
- the franchise regime based on VAT, which exempts from the payment of VAT
- the simplified real regime, for which companies must file an annual VAT return
- the normal real regime, for which companies must make monthly VAT declarations.
Different VAT tax regimes in France
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France
Author: Kristina Dosen
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Fiscal subject related
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3316
Content accuracy validation date:
20.12.2022
Content accuracy validation time:
08:23h
- VAT-based franchise regime
exempts companies from the declaration and payment of VAT on the services or sales they make. To be able to benefit from the exemption regime based on VAT, your company must have an annual turnover, excluding taxes, of less than €85,800.
This regime allows you not to pay VAT and, therefore, not to make a VAT declaration.
In return, if you benefit from it, you cannot invoice VAT to your customers, or practice VAT deduction on the goods or services acquired for the needs of your activity.
You must also include the mention of "VAT not applicable, article 293 B of the General Tax Code (CGI) on your invoices sent to your customers. ".
- simplified real regime
In the case of the simplified real regime, your company is taxed on the basis of the profits it makes. The simplified real regime makes it possible to reduce your reporting and payment obligations, with a single declaration per year.
To be able to benefit from the simplified real regime, your company must have an annual turnover including:
- between € 85,800 and € 818,000 for goods delivery activities, sales to be consumed on-site, and accommodation services.
- between € 34,400 and € 247,000 for service activities
- companies must also respect an annual VAT of less than €15,000.
- Normal real regime
All companies can benefit from this scheme, but it comes with obligations. In addition, the accounting of the company subject to the normal real regime is more precise than for the simplified real regime.
The companies automatically covered by the normal tax regime have an annual turnover, excluding tax, of more than:
- € 818,000 for retail and accommodation activities
- € 247,000 for services
- as well as companies that declare more than €15,000 in VAT.
For this scheme, the VAT collected must be declared and paid each month online from your professional space on impots.gouv.fr.
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