VAT Exemption in France: Understanding the 'VAT Not Applicable, Art. 293 B of the CGI' Rule in 2026

In France, VAT exemption under Article 293 B of the French General Tax Code (CGI) allows freelancers, independent professionals, and small businesses to operate without charging VAT on their invoices. This exemption simplifies accounting and reduces administrative burdens—provided you stay within the turnover thresholds and comply with mandatory invoice wording. Here’s everything you need to know for 2026, from thresholds to filing deadlines and compliance tips.

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What is the VAT exemption under Art. 293 B of the CGI?

The VAT exemption, or franchise en base de TVA, is a tax regime that allows small businesses and freelancers in France to avoid charging, collecting, or paying VAT on their sales. Instead of adding VAT to invoices, these businesses must include a specific legal mention: "TVA non applicable, article 293 B du CGI" (or "293 B bis" for certain professions). This exemption is automatic if your annual turnover remains below the set thresholds, but it comes with strict compliance requirements.

The exemption is designed to reduce administrative complexity for micro-businesses, but it also means you cannot recover VAT on your own business expenses. For many freelancers and small business owners, this trade-off is worthwhile—especially if their clients are individuals or other VAT-exempt businesses.

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What are the VAT exemption thresholds for 2026?

The French tax authorities update the VAT exemption thresholds annually. For 2026, the thresholds are as follows:

• €93,500 for sales of goods, crafts, and retail activities (e.g., e-commerce, artisans, shopkeepers).
• €41,250 for services and freelance activities (e.g., consultants, designers, developers, coaches).

These thresholds apply to your annual turnover, not profit. If your business exceeds the threshold during the year, you lose the exemption from the first day of the following month and must start charging VAT on all subsequent invoices.

Special cases and professions

Some professions have specific thresholds or rules. For example:

• Lawyers, authors, and performing artists may have different limits. Always check the official guidelines for your profession.
• Mixed activities: If your business combines goods and services, the applicable threshold depends on your primary activity. For example, if you sell products but also offer consulting, the €93,500 threshold applies if goods sales dominate your turnover.

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When and how to use the "VAT not applicable, Art. 293 B CGI" mention

Mandatory invoice wording

If you benefit from the VAT exemption, every invoice, receipt, or document serving as an invoice must include the following statement:

"TVA non applicable, article 293 B du CGI"

For certain regulated professions (e.g., lawyers), the mention may refer to Article 293 B bis instead. Omitting this statement can lead to penalties, as it is a legal requirement to inform your clients that VAT is not being charged.

Where to place the mention

The statement should be clearly visible on the invoice, typically:

• Near the total amount.
• In the same font size as other key details (e.g., payment terms, business registration number).

Avoid placing it in fine print or footnotes, as this could be interpreted as non-compliance.

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VAT filing deadlines in 2026: What you need to know

If you are under the VAT exemption threshold

• No VAT returns: You are not required to file VAT returns or pay VAT.
• No deadlines: There are no VAT-related deadlines to meet, other than ensuring your invoices include the mandatory mention.
• Monitor your turnover: Keep track of your monthly or quarterly turnover to avoid accidentally exceeding the threshold. If you do, you must start charging VAT immediately.

If you exceed the threshold (or opt out of the exemption)

Once you exceed the threshold or voluntarily opt to charge VAT, you must:

1. Register for VAT: Notify the French tax authorities (Service des Impôts des Entreprises) of your change in status.
2. Start charging VAT: Add VAT to all invoices from the first day of the month following the exceedance.
3. File VAT returns: Submit regular VAT returns based on your business’s turnover and the regime you fall under (real normal or simplified).

VAT filing schedules for 2026

The French tax authorities set specific deadlines for VAT returns and payments:

• Monthly or quarterly returns: Due between the 15th and 24th of the month following the reporting period. For example, the VAT return for January 2026 must be filed between February 15 and February 24, 2026.
• Annual return (CA12): For businesses under the simplified regime, the annual VAT return must be filed before the 2nd working day after May 1. For 2026, this deadline is May 5, 2026.

Payments must be made electronically via the official tax portal. Late filings or payments can result in penalties and interest charges.

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What happens if you lose your VAT exemption?

Exceeding the VAT exemption threshold triggers several obligations:

1. Immediate VAT liability: You must start charging VAT on all invoices from the first day of the following month.
2. VAT recovery: You can now reclaim VAT on business expenses, which may offset some of the additional administrative work.
3. Regular filings: You must file VAT returns according to the schedule set by the tax authorities (monthly, quarterly, or annually).
4. Invoicing updates: Remove the "VAT not applicable" mention and replace it with the applicable VAT rate (e.g., 20%, 10%, or 5.5%).

Voluntarily opting out of the exemption

Some businesses choose to opt out of the VAT exemption even if their turnover is below the threshold. This can be advantageous if:

• Your clients are VAT-registered businesses that can reclaim VAT.
• You have significant business expenses with VAT that you want to recover.
• You anticipate rapid growth and want to avoid the administrative hassle of transitioning later.

To opt out, you must notify the tax authorities and commit to charging VAT for at least two years.

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Key changes and updates for 2026

Recodification of VAT rules

As part of a broader tax reform, the French government has introduced the new Code of Taxation on Goods and Services (CIBS), which will replace parts of the CGI. The recodification comes into effect on September 1, 2026, but the rules for VAT exemption (including Article 293 B) remain unchanged until then. Businesses should monitor updates from the French tax authorities to ensure compliance with any new requirements.

Digital invoicing mandate

France is gradually rolling out mandatory electronic invoicing for B2B transactions. While this primarily affects businesses that charge VAT, VAT-exempt businesses should still prepare for potential future requirements. Staying organized with digital invoicing tools can help streamline compliance as regulations evolve.

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Common mistakes to avoid

1. Forgetting the mandatory mention: Omitting the "VAT not applicable, Art. 293 B CGI" statement on invoices can lead to penalties. Double-check every invoice before sending it.

2. Ignoring turnover tracking: Failing to monitor your turnover can result in accidentally exceeding the threshold. Use accounting software or spreadsheets to track your monthly sales.

3. Assuming all professions have the same threshold: Some professions (e.g., lawyers, artists) have unique rules. Always verify the thresholds for your specific activity.

4. Missing VAT filing deadlines: If you exceed the threshold, mark your calendar for VAT return deadlines to avoid late fees.

5. Not updating invoices after exceeding the threshold: Once you lose the exemption, you must update your invoices to include VAT. Failing to do so can result in fines.

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How to stay compliant effortlessly

Staying on top of VAT rules doesn’t have to be complicated. Here are a few tips to simplify compliance:

• Use accounting software: Tools like jefacturebien.fr’s dashboard can help you track turnover, generate compliant invoices, and monitor deadlines. Automated reminders ensure you never miss a filing date.

• Set up alerts for turnover thresholds: Configure alerts in your accounting system to notify you when you’re approaching the VAT exemption limit.

• Consult a tax professional: If your business is growing or you’re unsure about your VAT status, a comptable (accountant) can provide tailored advice.

• Stay informed: Follow updates from the French tax authorities or subscribe to newsletters for small business owners.

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Conclusion: Take action today

The VAT exemption under Article 293 B of the CGI is a valuable benefit for freelancers and small businesses in France, but it comes with responsibilities. By understanding the 2026 thresholds, including the mandatory invoice mention, and staying on top of VAT filing deadlines, you can avoid penalties and focus on growing your business.

Start by reviewing your current turnover and invoicing practices. If you’re close to the threshold, plan for the transition to VAT charging. And if you’re unsure about any aspect of VAT compliance, don’t hesitate to seek professional advice. Staying proactive will save you time, stress, and potential fines in the long run.