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France VAT Guide (TVA — Taxe sur la Valeur Ajoutée)

the French value-added tax (Taxe sur la Valeur Ajoutée — TVA). The guide covers: the standard TVA rate (20% — the "taux normal" since 2014, applied to most goods and services); the intermediate rate (10% — the "taux intermédiaire" for catering, transport, renovation of housing, medicines not reimbursed by Social Security, admission to museums and zoos, waste collection); the reduced rate (5.5% — the "taux réduit" for basic necessities: food (except alcohol and confectionery), water, energy (gas and electricity), children's car seats, books, school canteens, social housing construction, home improvement works to improve energy efficiency); the super-reduced rate (2.1% — the "taux super-réduit" for medicines reimbursed by Social Security, the TVA licence fee (redevance TVA), newspapers, certain live performances); the TVA exemption for small businesses (the "franchise en base de TVA" — a company with turnover under €91,900 (sales of goods) or €36,800 (services) can be exempt from charging TVA; the exemption is optional and the business cannot deduct input TVA); the TVA return (the "déclaration de TVA" — the CA3 form (monthly or quarterly) for standard taxpayers; the CA12 form (annual) for small businesses under the "régime simplifié d'imposition" — RSI); the TVA payment schedule — the company must file and pay TVA by the 19th of the following month (for monthly filers) or by the 19th of the month following the end of the quarter (for quarterly filers); the TVA credit (the "crédit de TVA" — if input TVA exceeds output TVA, the company can claim a refund by filing the CA3 form or the specific refund request (the "demande de remboursement de crédit de TVA")); the intra-Community TVA (the "TVA intracommunautaire" — the sale of goods to another EU member state is exempt from French TVA (Article 262 ter of the CGI), but the buyer must self-assess the TVA in their country — the "autoliquidation" or "reverse charge"; the purchase of goods from another EU member state is subject to French TVA at the applicable rate, with the right to deduct the input TVA simultaneously — the "auto-liquidation" in the buyer's TVA return); the VAT on imports (the "TVA à l'importation" — goods imported from outside the EU are subject to French TVA at the applicable rate, paid to Customs at the time of import (the "douane")); and the TVA representative (the "représentant fiscal en TVA" — a non-EU company that makes taxable supplies in France must appoint a TVA representative who is jointly liable for the TVA).

France applies the EU VAT Directive with several specific French features, including the franchise en base and the mandatory TVA representative for non-EU companies. All amounts in Euros (EUR). For related reading, see our Corporate Tax Guide → and Starting a Business Guide →.

TVA Rates

  • 20% — Standard (Taux Normal): Applies to most goods and services — electronics, clothing, furniture, professional services, consulting, legal fees, accounting fees, restaurant alcohol (the "boissons alcoolisées" served in restaurants are at 20%, not 10%).
  • 10% — Intermediate (Taux Intermédiaire): Applied to: (a) catering and takeaway food, (b) passenger transport, (c) renovation and improvement of housing (more than 2 years old), (d) non-reimbursed medicines, (e) museum and monument entrance fees, (f) zoo and botanical garden entrance fees, (g) waste collection and processing, (h) funeral services (except coffins at 20%).
  • 5.5% — Reduced (Taux Réduit): Applied to: (a) food products (except alcohol, confectionery, margarine, and caviar), (b) water supply, (c) gas and electricity (the "abonnement" and consumption), (d) books (including e-books), (e) school canteens, (f) social housing construction (the "logement social"), (g) energy-efficiency works (the "travaux d'amélioration de la performance énergétique" — the 5.5% rate applies to labour and materials for insulation, heating, and renewable energy installations).
  • 2.1% — Super-Reduced (Taux Super-Réduit): Applied to: (a) medicines reimbursed by Social Security, (b) the TVA licence fee (redevance audiovisuelle), (c) newspapers and periodicals registered with the Commission Paritaire, (d) certain live performances and theatre shows, (e) livestock and meat sold by non-taxable persons (the "ventes d'animaux de boucherie" by farmers).

Franchise en Base de TVA

  • Small business exemption: A company with annual turnover below €91,900 (for sales of goods) or €36,800 (for services) is exempt from charging TVA to customers. The exemption is automatic for new businesses (the "franchise en base" is mentioned on all invoices). Advantages: no TVA to charge, no TVA returns to file. Disadvantages: the business cannot deduct input TVA (the "TVA déductible" is lost), and customers who are TVA-registered may prefer dealing with a TVA-registered supplier.
  • Opt-in: A business can opt to charge TVA (the "option pour le paiement de la TVA" or "renonciation à la franchise") if the customer base consists primarily of TVA-registered businesses. The option is irrevocable for 2 years.

Cross-Border TVA

  • Intra-Community supplies: Sales of goods to TVA-registered customers in other EU member states are exempt from French TVA (the "livraison intracommunautaire"). The customer self-assesses TVA in their country (reverse charge). The French seller must: (a) obtain the customer's TVA number, (b) include the sale in the TVA return (Box 06 — "livraisons intracommunautaires"), (c) file the EC Sales List (the "Déclaration d'Échanges de Biens" or the "Recapitulatif des Prestations de Services" for services).
  • Imports from outside EU: Goods imported from outside the EU are subject to French TVA at the applicable rate. The TVA is collected by Customs (Douane) at the time of import. The importer can deduct the import TVA in their TVA return if they are TVA-registered.

For the full TVA filing requirements, see our Tax Filing Procedures Guide →. For starting a business in France, see our Starting a Business Guide →.