VAT Franchise (Franchise en base de TVA): Who Qualifies and What You Get
Learn how micro-entrepreneurs in France can be exempt from charging and collecting VAT if their turnover stays below a specific limit.
The VAT Franchise is a tax status for micro-entrepreneurs that allows you to operate without charging or collecting value-added tax on your professional invoices.
Who it's for
This scheme is available to micro-entrepreneurs whose annual turnover stays below €36,800.
What you get
By qualifying for this status, you are exempt from the requirement to charge VAT on your sales. This means you do not add tax to your invoices, and you also do not need to collect or pay that tax to the government.
What it costs you
While there is no monetary cost to use this scheme, there is a specific administrative requirement for your paperwork. You must include a specific legal mention regarding the non-applicability of VAT on every invoice you issue to your clients.
The catch to know
You must keep a close eye on your earnings. If your turnover exceeds the established threshold, you lose this status and must register for VAT immediately.
How to apply
- Determine if your projected annual turnover stays below the limit.
- Register for micro-entrepreneur status through the official administrative channels.
- Ensure your invoice templates include the required legal text regarding VAT non-applicability.