The VAT exemption status permits economic operators to make their supplies or provide services without including VAT on top of the net price and be outside the scope of the VAT compliance framework in general. Domestic and foreign businesses that align with the France VAT exemption requirements could benefit from the exemption.
For businesses that are part of the VAT exemption scheme, when making B2B transactions is mandatory to add a note within the Invoice description that states: ” VAT not applicable, Article 293 B of the French General Tax Code (CGI)”.
France VAT Exemption Threshold 2026
From January 1, 2026, domestic businesses have a chance to benefit from the VAT exemption threshold if the revenue made from the previous calendar year (N-1) does not exceed
- EUR 85,000 for commercial and accommodation activities,
- EUR €37,500 for service activities and liberal professions.
In cases where the turnover exceeds the thresholds previously mentioned, the economic operator may still have the option to be exempted from VAT until the end of the current calendar year if it doesn’t exceed the increased thresholds(recently adjusted):
- EUR €93,500 for commercial and accommodation activities
- EUR 41,250 for service activities and liberal professions
If the seller surpasses the increased threshold during the calendar year, the exemption ceases to apply from the day the threshold is reached.
When the threshold is reached, the economic operator becomes liable for VAT. Practically, this change entails the following:
- Suppliers are subject to VAT from the first day the threshold is exceeded.
- Deduction claims could be raised on business expenses as soon as the seller becomes liable for VAT