Add or remove French TVA at 20%, 10%, 5.5%, or 2.1% rates.
What are the TVA rates in France?
France has four TVA rates: 20% (standard rate for most goods and services), 10% (intermediate rate for restaurants, transport, renovations), 5.5% (reduced rate for food, books, energy), and 2.1% (super-reduced rate for newspapers and certain medicines).
When must a business charge TVA?
Most businesses must charge TVA once their annual turnover exceeds the franchise en base thresholds: €91,900 for sales of goods and €36,800 for services. Below these thresholds, micro-entrepreneurs may be exempt from TVA collection.
How can businesses recover TVA?
Businesses registered for TVA can deduct the TVA paid on their purchases (TVA déductible) from the TVA they collect from customers (TVA collectée). The difference is paid to the tax authorities. If deductible TVA exceeds collected TVA, the business can request a refund.
What is the difference between HT and TTC?
HT (Hors Taxes) means "excluding tax" — the price before TVA is added. TTC (Toutes Taxes Comprises) means "all taxes included" — the final price with TVA. Businesses typically invoice in HT while consumers see prices in TTC.
Compliance: This calculator uses official French tax rates for 2025. Results are indicative — for complex situations, consult a tax professional.
How French TVA works with different rates and recovery rules
How does this work in France?
TVA (VAT) in France follows specific French rules set by the DGFiP and Code Général des Impôts. The system is designed to balance social protection with economic activity. Understanding the rules helps you plan your finances and avoid surprises at tax time.
What are the key rates and thresholds?
French rates and thresholds are updated annually in the Loi de Finances. Income tax brackets, social charge rates, and benefit thresholds all change each January. Always check the latest figures on impots.gouv.fr or service-public.fr. Using outdated rates can lead to incorrect calculations and unexpected tax bills.
How does this affect your annual tax return?
All income and deductions must be reported on your déclaration de revenus annuelle, filed online at impots.gouv.fr by mid-May. The tax office cross-references your declaration with employer data (DSN), bank reports, and other sources. Errors can trigger a contrôle fiscal (tax audit) with penalties of 10-40% of undeclared amounts.
What records should you keep?
French law requires keeping all financial records for at least 6 years for tax purposes and 10 years for commercial documents. This includes invoices, receipts, bank statements, contracts, and payslips. Digital copies are accepted if they are legible and stored securely. The fisc can audit any period within these timeframes.
Where can you get help?
For tax questions, contact your SIP (Service des Impôts des Particuliers) or SIE (Service des Impôts des Entreprises). The service-public.fr website has detailed guides. For complex situations, hire an expert-comptable (chartered accountant) — fees range from €500 to €3,000/year. Trade unions (syndicats) and the CAF also provide free advice on social benefits.
What penalties apply for errors?
Late filing: 10% surcharge plus 0.2% per month of interest. Deliberate understatement: 40% penalty. Fraud: 80% penalty plus potential criminal prosecution. If you discover an error, file a déclaration rectificative as soon as possible — voluntary correction reduces penalties. The fisc appreciates good faith and transparent communication.
DGFiP-Aligned: Based on 2025 DGFiP rates and thresholds. For personal advice, speak to a qualified expert-comptable (chartered accountant).
Disclaimer: This calculator provides estimates based on current French tax rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax adviser before making financial decisions. Read our terms
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