What is Franchise en base de TVA?
The franchise en base lets a small business charge no VAT and file no VAT return, below EUR 85,000 of turnover for goods or EUR 37,500 for services.
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Current Rate (Calendar year. Exceeding the base threshold in one year means VAT from 1 January of the next year; exceeding the higher figure means VAT from the day of the overshoot.)
Thresholds EUR 85,000 (goods) and EUR 37,500 (services), with a tolerance of EUR 93,500 and EUR 41,250.
Example
A freelance designer with EUR 30,000 of annual services turnover is in the franchise. Her invoices say TVA non applicable, art. 293 B du CGI, and she deducts no VAT on costs.
How Franchise en base de TVA works in France
A business in the franchise charges no VAT, so its customers cannot deduct any. It has to put the legal mention on its invoices. It still needs an intra-EU VAT number if it buys EU services or if its EU purchases or distance sales pass EUR 10,000 a year.
AccountsOS watches your turnover against the thresholds and warns Finn's chat when you are near.
Related terms
TVA (taxe sur la valeur ajoutée) is France's VAT. The standard rate is 20%, with 10% intermediate, 5.5% reduced and 2.1% special rates.
A micro-entrepreneur is a sole trader on the simplest regime: social contributions as a percentage of turnover, a flat allowance for income tax and, below the thresholds, no VAT.
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