Question 1

Who must register for TVA (VAT) in France, and what are the rates?

Accepted Answer

TVA (taxe sur la valeur ajoutée) is France's VAT system. The standard rate is 20%, applied to most goods and services. A reduced rate of 10% applies to restaurant meals, passenger transport, home renovation work, and some cultural goods. A rate of 5.5% covers most food, books, and some energy products. A superreduced rate of 2.1% applies to certain medicines and press publications.

Most businesses and selfemployed individuals are required to register for TVA once turnover exceeds the franchise

Question 2

How does the auto-entrepreneur (micro-entrepreneur) regime work for tax in France?

Accepted Answer

The autoentrepreneur regime (formally microentrepreneur since 2016) is a simplified business structure for freelancers and sole traders in France. Tax and social contributions are calculated as a flat percentage of turnover — there is no deduction for actual expenses. This makes administration simple but can be costly if expenses are high.

For 2024, the turnover ceilings are €188,700 for trading and accommodation businesses, and €77,700 for services and liberal professions. Income tax under the

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Business

Who must register for TVA (VAT) in France, and what are the rates?

How does the auto-entrepreneur (micro-entrepreneur) regime work for tax in France?