TLDR: Authors of intellectual works benefit from a VAT exemption subject to turnover conditions, but this exemption does not apply to architects, software authors, or VAT due on importation. It may extend to ancillary operations, provided the thresholds set by Article 293 B of the French Tax Code (CGI) are respected.
Exclusions from the exemption regime
The VAT exemption does not apply to architects or software authors, even if they create works protected by copyright. This exclusion is explicitly provided for by the CGI and administrative commentary.
Turnover-related limits
The exemption is subject to turnover thresholds defined in Article 293 B of the CGI. These thresholds vary depending on the type of operation (transfer of works, patrimonial rights, or ancillary activities). Exceeding these thresholds results in the loss of the exemption benefit.
Covered ancillary operations
The exemption may apply to operations other than the transfer of works or rights, such as:
- advertising services (e.g., assignment of image rights);
- sales of goods not classified as intellectual works;
- consulting services.
These operations remain subject to the specific thresholds of paragraphs IV and V of Article 293 B of the CGI.
VAT on importation
Authors benefiting from the exemption are not exempt from VAT due on importation when it is payable. This obligation applies regardless of the exemption regime.
Withholding tax mechanism
Publishers, collective management organisations, and producers must withhold VAT on royalties paid to authors, unless the authors explicitly waive this. In the absence of a waiver, the amounts paid are presumed to be subject to withholding, including for authors under the exemption regime.
Waiver of withholding
The waiver of the withholding mechanism is irrevocable for a minimum period of five years, renewable by tacit renewal. It applies to all royalties received by the author and takes effect on the first day of the month following notification. If the author has received a VAT refund, the renewal is automatic for a new five-year period.
Special cases
Lawyers who are also authors of intellectual works may benefit from the exemption for their regulated activity, provided they comply with the thresholds set by Article 293 B of the CGI. The exemption also covers remuneration related to the exploitation of patrimonial rights (right of representation, reproduction, private copying).