TLDR: A freelancer in France becomes subject to VAT when their annual turnover exceeds the thresholds set by Article 293 B of the CGI. The effective date of the obligation varies: from the 1st day of the month the threshold is exceeded for service providers, or from January 1 of the following year for authors and artists. Thresholds depend on the type of activity and applicable tax regime.
VAT liability thresholds and effective dates
VAT liability for freelancers in France is governed by Article 293 B of the CGI. Exceeding the annual turnover thresholds triggers the obligation to apply VAT from specific dates:
- Service providers: the obligation applies from the 1st day of the month the threshold is exceeded, as per section b of 1° of I of Art. 293 B CGI.
- Authors and artists: the obligation applies from the 1st day of the month the threshold is exceeded if the limit is surpassed during the year, or from January 1 of the following year if the threshold is only exceeded at year-end.
Special regime for authors and artists
Authors of intellectual works and performing artists follow specific rules. If the threshold is exceeded during the year, VAT liability begins on the 1st day of the month the threshold is exceeded. If the threshold is only exceeded at year-end, liability begins on January 1 of the following year. This regime is governed by Section V of Art. 293 B CGI.
Copyright assignments
For copyright assignments with installment payments, the threshold calculation is based on payments actually received during the calendar year. If the threshold is exceeded only at year-end, VAT liability begins on January 1 of the following year.
Corrective fee notes
Authors and artists may issue corrective fee notes for transactions in the month the threshold was exceeded, if these were not initially subject to VAT. This allows regularization without re-invoicing the entire amount.
Exempt transactions and special regimes
The VAT exemption does not apply to exempt or excluded transactions, such as sales of used goods with margin, specific cross-border operations, and digital services to EU consumers. For the latter, the threshold is €10,000/year.
Farmers
Farmers become VAT-liable if the average revenue over three consecutive years exceeds €46,000, with liability beginning on January 1 of the year following the three-year period.