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

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 super-reduced rate of 2.1% applies to certain medicines and press publications.

Most businesses and self-employed individuals are required to register for TVA once turnover exceeds the franchise en base threshold: €91,900 for goods and accommodation, and €36,800 for services (2024 figures). Below these thresholds, businesses can operate under the franchise en base regime and charge no TVA, though they also cannot reclaim input TVA.

Auto-entrepreneurs (micro-entrepreneurs) benefit from the franchise en base as long as they stay under the applicable turnover ceiling. If they exceed it, they must register for TVA from the following year or even mid-year if thresholds are substantially exceeded.

Registered businesses file TVA returns monthly, quarterly, or annually depending on their size and regime. TVA collected from customers is paid to the DGFiP after deducting TVA paid on business purchases.