VAT Guide for Construction & Real Estate in France

    Construction & Real Estate operating in France charge the standard VAT rate of 20% (reduced rates: 5.5%, 10%). Registration becomes mandatory at €85,800 (goods) / €34,400 (services), returns are filed monthly or quarterly, and cross-border B2B services are generally reverse-charged to the customer.

    Standard rate20%
    Reduced rates5.5%, 10%
    Registration threshold€85,800 (goods) / €34,400 (services)
    Filing frequencyMonthly or quarterly
    CurrencyEUR
    In force since01 Jan 2014
    Last verified01 Sept 2026

    Official source

    Direction générale des Finances publiques (impots.gouv.fr)

    Figure verified on 01 Sept 2026. Every rate on this page is traceable to the authority above.

    Worked examples

    Domestic sale in France

    You invoice a customer based in France for €1,000.00 of construction & real estate work.

    Add 20% VAT: €200.00. Total invoiced €1,200.00, declared in your monthly or quarterly return.

    Cross-border B2B inside the EU

    A VAT-registered business in another member state buys the same €1,000.00 service and supplies a valid VAT number.

    Invoice at 0% under the reverse charge, state "Reverse charge — Article 196 VAT Directive", and report the sale on your EC Sales List.

    Sales to consumers in another EU country

    You sell €12,000.00 per year to private customers in other member states.

    Past the €10,000 distance-selling threshold you must apply the destination rate and declare the sales through the One-Stop Shop.

    Late filing exposure

    Your monthly or quarterly return is filed after the deadline.

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

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    Compliance checklist

    • Confirm whether you are above €85,800 (goods) / €34,400 (services)
    • Register with Direction générale des Finances publiques (impots.gouv.fr) before your first taxable supply
    • Apply 20% on domestic sales and the reverse charge on EU B2B
    • Validate every EU customer VAT number in VIES and keep the proof
    • File monthly or quarterly and archive invoices for the statutory period
    • Auto-entrepreneur regime with simplified VAT
    • Special rules for DOM-TOM territories

    FAQ — Construction & Real Estate in France

    When must construction & real estate register for VAT in France?

    Registration is required at €85,800 (goods) / €34,400 (services). Voluntary registration below that level is possible and usually worthwhile when you buy a lot of taxable inputs, because it lets you reclaim input VAT.

    Which VAT rate applies to construction & real estate in France?

    The standard rate is 20%, with reduced rates of 5.5% and 10% for specific categories. Applied since 2014-01-01, last verified against Direction générale des Finances publiques (impots.gouv.fr) on 2026-09-01.

    How often do I file VAT returns in France?

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

    What must appear on an invoice in France?

    Invoices must include a sequential number, date, seller/buyer details, VAT number, description, and amounts. E-invoicing mandatory for B2B from 2026.

    Do I charge VAT to business clients in other EU countries?

    No. For B2B services within the EU the reverse charge applies: invoice at 0%, quote both VAT numbers, add the reverse-charge mention and report the transaction on your recapitulative statement. Always validate the customer's VAT number in VIES first.

    What is specific to France for my sector?

    Auto-entrepreneur regime with simplified VAT · Special rules for DOM-TOM territories · E-invoicing mandate rolling out 2026-2027

    Go further

    Disclaimer : This tool is provided for informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor for decisions regarding your tax situation.Source : EU VAT Directive 2006/112/EC

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