TLDR: Lawyers established in France benefit from a VAT exemption if their turnover, assessed under Article 293 D of the French Tax Code (CGI), does not exceed the thresholds set out in Article 293 B of the CGI. These thresholds differ depending on whether the operations relate to the regulated activity of lawyers or other operations. The exemption applies only to services performed in France and within the scope of this regulated activity.
Legal basis and scope
The VAT exemption for lawyers is provided for in Article 293 B of the CGI, specifically in I bis. It applies to lawyers, lawyers at the Council of State and the Court of Cassation, as well as other assimilated professions. The turnover thresholds are distinct for operations related to the regulated activity of lawyers and for other operations.
Turnover thresholds
The applicable thresholds, assessed under the conditions of Article 293 D of the CGI, are as follows:
- Operations related to the regulated activity of lawyers: €50,000 for the previous calendar year and €55,000 for the current year.
- Other operations: €35,000 for the previous calendar year and €38,500 for the current year.
Exclusions from turnover calculation
The following are not included in the calculation of the thresholds:
- Services not related to the regulated activity of lawyers.
- Exceptional income, such as proceeds from the sale of fixed assets.
- For collaborating lawyers, reimbursements of expenses incurred on behalf of the "principal" lawyer, subject to the benefit of the tempering measure provided for in BOI-TVA-BASE-10-20-40-30.
Exceeding the thresholds and obligations
If the turnover exceeds the thresholds set out in Section III of Article 293 B of the CGI, the lawyer becomes liable for VAT from the first day of the month in which the threshold was exceeded. Payments received for services performed before this date are not subject to VAT. Lawyers may issue corrected fee notes for operations in the month of exceeding that were not previously taxed.
Consequences of the exemption
Lawyers benefiting from the exemption:
- Are exempt from paying VAT on their operations.
- Cannot claim any deduction of VAT on goods and services acquired for the needs of their activity.
- Must state on their invoices or fee notes: « TVA non applicable, article 293 B du CGI ».
Declarative obligations
Lawyers under the VAT exemption scheme have no specific VAT declarative obligations, except those referred to in Article VII-A § 260 of BOI-TVA-DECLA-40-20. They remain subject to the declarative obligations provided for other taxes.