France vs Germany — VAT Comparison 2026

    Compare VAT rates, thresholds, and rules between Europe's two largest economies.

    CriteriaFranceGermany
    Standard Rate20%19%
    Reduced Rates5.5%, 10%7%
    Registration Threshold€85,800 (goods) / €34,400 (services)€22,000 annual turnover
    CurrencyEUREUR
    Filing FrequencyMonthly or quarterlyMonthly with annual return

    Key Differences

    France has a standard VAT rate of 20% compared to 19% in Germany. This means businesses in France collect more VAT on standard-rated supplies.

    Registration thresholds differ significantly: €85,800 (goods) / €34,400 (services) in France vs €22,000 annual turnover in Germany. This affects when small businesses must start charging and collecting VAT.

    Penalties Comparison

    France

    10% surcharge for late filing, 40% for deliberate non-compliance, 80% for fraud.

    Germany

    1% per month late payment penalty, up to 10% of unpaid tax. Estimation penalties for non-filing.

    Check your compliance

    Get a personalized Tax Health Score with actionable recommendations.

    Get Tax Health Score