TLDR: Yes, lawyers can benefit from the VAT exemption for their regulated activity if their turnover does not exceed the thresholds set out in III of Article 293 B of the French Tax Code (CGI). This exemption only applies to the activity of a lawyer, not to operations related to their status as an author, which are subject to a separate regime.
Eligibility conditions for lawyers
The VAT exemption applies to lawyers, including those at the Council of State and the Court of Cassation, only for operations related to their regulated activity (legal professional services). The benefit is granted if the turnover generated in this context does not exceed the ceilings set by III of Article 293 B of the CGI.
Strict separation of regimes
The activities of a lawyer and those of an author of intellectual works are distinct:
- The exemption for lawyers covers exclusively their regulated activity.
- Operations related to the assignment of works or copyright (e.g., right of representation, right of reproduction) fall under a specific exemption, provided for in III or IV of Article 293 B of the CGI, with their own thresholds and conditions.
Exclusions and limits
The exemption for lawyers does not extend to:
- Author activities not related to the assignment of works or rights (e.g., advertising services, sale of goods not qualifying as intellectual works).
- Architects and software authors, who are excluded from the specific regime for authors of intellectual works.
Declarative obligations
Lawyers benefiting from the exemption for their regulated activity are exempt from filing a VAT existence and identification declaration, as long as the exemption remains applicable. This exemption ceases as soon as the thresholds are exceeded or the conditions are no longer met.
Loss of exemption benefit
If the turnover of the regulated activity exceeds the set thresholds, the lawyer loses the benefit of the exemption and must comply with the declarative and VAT payment obligations for this activity. Author activities, on the other hand, remain subject to their own regime.
Specific regime for authors
Lawyers acting as authors of intellectual works can benefit from the exemption provided for in III of Article 293 B of the CGI only for the supply of their works and the assignment of the patrimonial rights recognised by law (e.g., right of representation, right of reproduction).