In France, a freelancer must charge VAT only if they do not qualify for a tax exemption or a specific franchise regime. Otherwise, VAT application follows general rules, with exceptions for certain professional categories or types of transactions.
Who Is Subject to VAT
In France, VAT applies to individuals independently carrying out an economic activity, regardless of their legal status, tax situation, or form of intervention. This includes freelancers, who are considered VAT-liable unless they benefit from an exemption or franchise regime.
Franchise Regime
Freelancers under the franchise regime (Art. 293 B or 293 B bis of the Code Général des Impôts) do not need to charge VAT on invoices. In these cases, invoices must explicitly state: "TVA non applicable, article 293 B du CGI" (VAT not applicable, Article 293 B of the CGI).
Exceptions and Special Cases
Certain professional categories, such as lawyers and authors of intellectual works, have specific VAT invoicing rules. For example, non-franchise lawyers must charge VAT in addition to the fees set by regulations.
Exempt Transactions
VAT-exempt transactions do not require VAT invoicing. Additionally, freelancers under the micro-entrepreneur regime may charge VAT at the applicable rate for their operations.
Non-Resident Freelancers
Non-resident freelancers without a permanent establishment in France have differentiated VAT obligations depending on whether they are based inside or outside the EU. For services provided by a non-resident, VAT is payable by the French client (reverse charge) if the latter is VAT-liable in France.
Invoicing Obligations
Invoices issued by VAT-franchise entities must not include VAT and must specify the franchise regime. Transparent intermediaries must consider total turnover for VAT franchise purposes.