Exceeding the VAT Threshold in France: What to Do When You Lose the VAT Exemption in 2026

Losing your VAT exemption in France can feel overwhelming, especially with the added complexity of the 2026 e-invoicing reforms. If you’ve exceeded the VAT threshold in 2026, you must act quickly to ensure compliance. Here’s what you need to know about the thresholds, deadlines, and steps to take—plus how to navigate the new e-invoicing rules seamlessly.

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What Are the VAT Thresholds in France for 2026?

France’s VAT exemption (or "franchise en base de TVA") allows small businesses and freelancers to avoid charging VAT on their sales. However, this exemption is only available if your turnover stays below specific thresholds. For 2026, the thresholds are:

• €85,000 (for the previous year, N-1) or €93,500 (for the current year, N) for:

  • Sales of goods
  • Food and beverage services
  • Accommodation services (e.g., hotels, B&Bs)

• €37,500 (N-1) or €41,250 (N) for:

  • Services (e.g., consulting, freelance work, coaching)
  • Liberal professions (e.g., lawyers, architects, accountants)

These thresholds are set by Article 293 B of the French Tax Code (CGI) and were recodified in December 2025. If your turnover exceeds the current year’s threshold (€93,500 or €41,250), you lose your VAT exemption immediately—not at the end of the year.

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What Happens When You Exceed the VAT Threshold?

1. You Lose the VAT Exemption from the Day of Exceedance

If your turnover surpasses the threshold in 2026, you must start charging VAT from the exact day of the exceedance. For example:

• If you’re a freelance consultant and exceed €41,250 in October 2026, you must add VAT to all invoices issued from October 1 onward.
• If you sell goods and exceed €93,500 in June 2026, you must charge VAT on all sales from June 1.

2. You Must Register for VAT

Once you exceed the threshold, you must:

• Register for VAT with the French tax authorities (DGFiP). This can be done online via your impots.gouv.fr account.
• Obtain a VAT number (numéro de TVA intracommunautaire) to include on your invoices.
• Start filing VAT returns (usually quarterly or monthly, depending on your turnover).

3. You Must Update Your Invoicing Process

From the day you exceed the threshold, your invoices must include:

• Your VAT number
• The VAT rate applied (e.g., 20%, 10%, or 5.5%)
• The VAT amount charged
• A clear breakdown of the net price + VAT = total price

Failure to include this information can result in invalid invoices and potential penalties.

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How Does the 2026 E-Invoicing Reform Affect You?

France’s e-invoicing reform is rolling out in phases, and it applies to all VAT-registered businesses—including those who exceed the threshold in 2026. Here’s what you need to know:

Key Deadlines for 2026

• September 1, 2026: All businesses (including micro-entrepreneurs and freelancers) must be able to receive electronic invoices via a certified platform (Plateforme de Dématérialisation Partenaire, or PDP).
• September 1, 2027: Micro-businesses and SMEs must issue electronic invoices for B2B transactions.

What Is a Certified E-Invoicing Platform?

A certified platform (PDP) is a government-approved service that ensures your invoices comply with French tax laws. These platforms:

• Generate Factur-X invoices (a hybrid PDF/XML format required by law).
• Submit invoices to the Public Invoicing Portal (PPF) for validation.
• Store invoices for 10 years (the legal retention period).

The French government has published a list of certified platforms, including free or low-cost options for small businesses.

What If You’re Not Ready by September 2026?

The French tax authorities are offering a grace period until the end of 2026 for businesses struggling to comply. However, this doesn’t apply to VAT obligations—you must still charge and report VAT if you exceed the threshold.

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Step-by-Step: What to Do If You Exceed the VAT Threshold in 2026

1. Calculate Your Turnover

• Check your year-to-date turnover regularly (e.g., monthly or quarterly).
• If you’re close to the threshold, monitor it weekly to avoid surprises.

2. Determine the Exact Date of Exceedance

• Identify the day your turnover surpassed the threshold (e.g., €41,250 for services).
• This is the date from which you must start charging VAT.

3. Register for VAT

• Log in to your impots.gouv.fr account and complete the VAT registration process.
• You’ll receive your VAT number within a few days.

4. Update Your Invoicing System

• Ensure your invoices include:
  • Your VAT number
  • The correct VAT rate
  • A clear breakdown of VAT amounts
• If you’re using invoicing software, check that it supports Factur-X 2026 compliance to meet e-invoicing requirements. Tools like jefacturebien.fr can automate this for you, ensuring your invoices are always in the correct format and submitted to the Public Invoicing Portal.

5. Start Filing VAT Returns

• Depending on your turnover, you’ll file VAT returns monthly or quarterly.
• Use the CA3 form (for standard VAT returns) or the CA12 form (for annual returns, if applicable).

6. Prepare for E-Invoicing

• Choose a certified e-invoicing platform (PDP) before September 2026.
• Test the platform to ensure it meets your needs (e.g., integration with your accounting software).
• If you’re unsure which platform to use, consult the official list or ask your accountant for recommendations.

7. Keep Accurate Records

• Maintain detailed records of all invoices, VAT collected, and VAT paid.
• Use accounting exports to simplify record-keeping. For example, jefacturebien.fr’s accounting exports allow you to generate FEC, CSV, or Excel files with one click, making it easy to share data with your accountant or import it into your accounting software.

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Common Mistakes to Avoid

1. Waiting Until the End of the Year to Act

• The VAT exemption ends the day you exceed the threshold, not at the end of the year. Delaying action can lead to unpaid VAT, fines, or audits.

2. Ignoring E-Invoicing Requirements

• Even if you’re a micro-business, you must be able to receive electronic invoices from September 2026. Don’t wait until the last minute to set up a certified platform.

3. Using Incorrect VAT Rates

• France has multiple VAT rates (20%, 10%, 5.5%, and 2.1%). Ensure you’re applying the correct rate to your products or services. For example:
  • 20%: Standard rate (most goods and services)
  • 10%: Reduced rate (e.g., restaurants, public transport, some renovations)
  • 5.5%: Super-reduced rate (e.g., basic food products, books, energy-saving materials)
  • 2.1%: Special rate (e.g., medicines, press publications)

4. Not Updating Your Invoicing Software

• If your software doesn’t support Factur-X 2026 compliance, your invoices won’t be legally valid. Upgrade or switch to a compliant tool before the deadline.

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How Does This Affect Freelancers and Micro-Entrepreneurs?

Freelancers and micro-entrepreneurs (auto-entrepreneurs) are not exempt from these rules. If you exceed the VAT threshold, you must:

• Charge VAT on all future invoices.
• Register for VAT and obtain a VAT number.
• File VAT returns (even if you’re still under the micro-entrepreneur regime for income tax).
• Comply with e-invoicing rules from September 2026.

What If You’re Close to the Threshold?

If your turnover is nearing the threshold, consider:

• Monitoring your turnover weekly to avoid surprises.
• Setting aside funds to cover future VAT payments.
• Consulting an accountant to plan for the transition.

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How jefacturebien.fr Can Help

Navigating VAT compliance and e-invoicing can be complex, but tools like jefacturebien.fr simplify the process. Here’s how:

• Automatic Factur-X 2026 compliance: Your invoices are generated in the required PDF/A-3b + XML CII format and submitted to the Public Invoicing Portal, ensuring you meet all legal requirements without extra effort.
• Accounting exports: Easily export your data in FEC, CSV, Excel, or JSON formats for your accountant or accounting software. This saves time and reduces errors when preparing VAT returns or sharing records with your accountant.

For more details, explore jefacturebien.fr’s features.

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Conclusion: Take Action Now

Exceeding the VAT threshold in France doesn’t have to be stressful—if you act quickly and follow the steps outlined above. Here’s a quick recap of what to do:

1. Check your turnover regularly to identify when you exceed the threshold.
2. Register for VAT and update your invoicing process immediately.
3. Prepare for e-invoicing by choosing a certified platform before September 2026.
4. Keep accurate records and file VAT returns on time.

By staying proactive, you’ll avoid penalties, ensure compliance, and focus on growing your business. If you’re unsure about any step, consult an accountant or use tools like jefacturebien.fr to simplify the process.