# What is Franchise en base de TVA?

Country: France

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.

## 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.

Source: https://www.impots.gouv.fr/professionnel/tva

## Related terms

- [TVA (VAT)](https://accounts-os.com/fr/glossary/tva-france)
- [Micro-entrepreneur](https://accounts-os.com/fr/glossary/micro-entrepreneur-france)