How VAT (TVA) Works in France (2026)
Jules de Bruin
Editor
Updated: June 2026 | Found helpful by 7 others
- Expats
- Residents
Updated June 2026. TVA(taxe sur la valeur ajoutée) is France's value-added tax. Businesses collect it on their sales and remit it to the state, while consumers pay it inside the displayed TTC price. There are four well-established rates as of 2026: 20% (standard), 10% (intermediate), 5.5% (reduced), and 2.1% (super-reduced). A VAT-registered business reclaims the input TVA it pays, but small businesses under the franchise en base de TVA threshold neither charge nor reclaim it. This matters most for freelancers and business owners.
Key takeaways
- France has four TVA rates as of 2026: 20%, 10%, 5.5%, and 2.1%.
- Consumers pay TVA in the TTC price; HT is the price before tax.
- Businesses collect output TVA and deduct input TVA, remitting the difference to the state.
- The franchise en base de TVA exempts small businesses below a turnover threshold (check impots.gouv.fr).
- A numéro de TVA intracommunautaire is required for EU trade and must appear on invoices.
What are the French VAT rates?
France applies four TVA rates as of 2026. The standard rate is 20% and covers most goods and services. The intermediate rate (intermédiaire) of 10% applies to items such as restaurant meals, unprocessed agricultural products, passenger transport, and certain home renovation work. The reduced rate (réduit) of 5.5% covers most food products, books, water, and energy-saving home improvements. The super-reduced rate (particulier) of 2.1% applies to a narrow set of items, including reimbursable medicines and press publications.
The exact category a product falls into is set by the Code général des impôts. When in doubt, confirm the applicable rate on impots.gouv.fr or service-public.fr.
How does TVA work for businesses?
TVA is a tax on added value, collected in stages along the supply chain. A VAT-registered business charges output TVA (TVA collectée) on its sales and pays input TVA (TVA déductible) on its business purchases. When it files its return, it deducts the input TVA from the output TVA and remits only the difference to the state. If input TVA exceeds output TVA, the business carries forward or claims a crédit de TVA.
In practice the business acts as a collector for the state: the real cost lands on the final consumer, who cannot reclaim anything. Returns are filed monthly, quarterly, or annually depending on the régime (réel normal or réel simplifié).
Keep your invoices
What is the franchise en base de TVA?
The franchise en base de TVA is a VAT exemption for small businesses and micro-entrepreneurs whose annual turnover stays below a set threshold. While you are under the threshold, you do not charge TVA to your customers and you cannot reclaim input TVA. Your invoices must carry the mention "TVA non applicable, art. 293 B du CGI".
The thresholds differ for goods versus services and are adjusted periodically, so we do not quote an exact figure here. Confirm the current franchise en base threshold and any tolerance ceiling on impots.gouv.fr. Once your turnover crosses the threshold, you must register for TVA, start charging it, and begin filing returns.
Exemption is not always an advantage
HT vs TTC: what is the difference?
HT (hors taxes) is the price before TVA. TTC (toutes taxes comprises) is the price including TVA. For a product at the 20% rate, a price of 100 EUR HT becomes 120 EUR TTC. Consumer prices in shops and on websites must be shown TTC, so the displayed amount already includes the tax. Business-to-business quotes and invoices, by contrast, usually list HT amounts and then add the TVA line.
When reading an invoice, look for the HT total, the TVA line (with the rate applied), and the TTC total you actually pay.
What is the TVA intracommunautaire number?
The numéro de TVA intracommunautaire is your intra-community VAT number, issued when your French business is registered for TVA. It identifies you for trade within the EU: for many business-to-business sales between EU countries, TVA is self-accountedby the buyer rather than charged by the seller. The number must appear on your invoices, and you can verify a counterpart's number through the EU VIES system.
Sources: impots.gouv.fr and service-public.fr, June 2026. Rates stated as of 2026. Verify current rates and thresholds with the official sources before relying on them.
Frequently Asked Questions
What is the standard VAT rate in France?
The standard VAT (TVA) rate in France is 20% as of 2026. It applies to most goods and services. Reduced rates of 10%, 5.5%, and 2.1% apply to specific categories such as food, transport, and certain medicines.
What is the difference between HT and TTC?
HT (hors taxes) is the price before VAT, and TTC (toutes taxes comprises) is the price including VAT. Consumer prices in France are shown TTC, so the displayed price already includes the TVA. Businesses usually quote each other HT prices.
Do micro-entrepreneurs charge VAT in France?
Not while they stay under the franchise en base de TVA turnover threshold. Below that threshold a micro-entrepreneur does not charge or reclaim TVA and writes 'TVA non applicable, art. 293 B du CGI' on invoices. Above it, they must register for and charge TVA. Check the current threshold on impots.gouv.fr.
Can a business reclaim the VAT it pays in France?
Yes. A VAT-registered business deducts the input TVA it pays on business purchases from the output TVA it collects from customers, and remits only the difference to the state. Businesses under the franchise en base de TVA cannot reclaim input TVA.
What is a numéro de TVA intracommunautaire?
It is an intra-community VAT number issued to French VAT-registered businesses for trade with other EU countries. It lets you invoice and buy across the EU without charging TVA in many B2B cases, and it must appear on your invoices. You can verify EU numbers through the VIES system.