VAT Exemption France: Guide for Freelancers
How the French VAT exemption (franchise en base) works for freelancers. Eligibility, limits, and the mention to include on invoices.
How the Franchise en Base Works
The franchise en base de TVA exempts small businesses from charging VAT. You: • Don't charge VAT on sales • Don't file VAT returns • Can't recover input VAT on purchases • Must include the mention 'TVA non applicable, art. 293 B du CGI' on all invoices
Eligibility Criteria
You qualify if your annual revenue stays below: • €36,800 for services (tolerance: €39,100) • €91,900 for goods (tolerance: €101,000) • For mixed activities, each limit applies to its category
Revenue is measured on a calendar year basis (January 1 to December 31), prorated if you started mid-year.
Advantages and Disadvantages
Advantages: • Simpler administration • Competitive pricing for B2C clients • No VAT filing obligations
Disadvantages: • Can't reclaim VAT on purchases • May appear less professional to B2B clients • Lost deductions on expensive equipment
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