VAT Franchise: Who Qualifies and What You Get
Learn how small businesses in France can avoid charging VAT on their services through the VAT Franchise scheme.
The VAT Franchise is a tax status that allows small businesses to operate without charging Value Added Tax on their services.
Who it's for
This scheme is designed for small businesses whose annual turnover stays below specific government thresholds.
What you get
If you qualify, you do not need to charge VAT to your customers, nor do you need to collect it on behalf of the government. This simplifies your pricing and your bookkeeping.
What it costs you
While there is no direct fee to participate, you have a specific administrative requirement. You must include a mandatory legal mention on all your invoices stating that VAT is not applicable.
The catch to know
The status is strictly tied to your income levels. If your turnover exceeds the allowed threshold, you are required to register for VAT immediately.
How to apply
- Check your annual turnover to ensure you are below the required limits.
- Set up your billing process to include the required legal notice on every invoice.
- Monitor your income closely to ensure you do not accidentally cross the threshold.
- Consult the official government portal for specific threshold amounts and registration steps.