Tax Obligations for Freelancers in France: Full Breakdown

As a freelancer in France, you're subject to: 1. Income Tax (impôt sur le revenu) — progressive rates 0-45% 2. Social Charges (cotisations sociales) — 22% for services, 12.3% for goods 3. VAT (TVA) — 20% standard rate, if applicable 4. CFE (Cotisation Foncière des Entreprises) — local business tax 5. CVAE — if revenue exceeds €500,000

For auto-entrepreneurs, social charges are simplified with the versement libératoire option.

• Monthly/Quarterly: Social charges declaration (URSSAF) • Monthly/Quarterly: VAT declaration (if registered) • May-June: Annual income tax declaration • December 15: CFE payment • Annual: Declaration of professional revenues to URSSAF

Since 2016, these terms are interchangeable. The micro-entrepreneur regime offers: • Simplified social charges (flat percentage) • Optional versement libératoire (income tax included in social charges) • VAT exemption under the franchise en base • Simplified accounting (livre des recettes)

Limitations: • Revenue caps (€77,700 services, €188,700 goods in 2026) • Limited expense deduction • No VAT recovery if exempt

Tips to reduce your tax burden: 1. Track all deductible expenses meticulously 2. Consider the real regime if expenses exceed 34% of revenue 3. Use the ACRE exemption in your first year 4. Leverage the versement libératoire if your income is moderate 5. Register for VAT voluntarily if you have significant purchases 6. Use Taxelyo's Tax Health Score to identify optimization opportunities