TLDR: Farmers in France are subject to two distinct VAT regimes: the general regime for non-agricultural activities and the simplified agricultural regime (RSA) for pure agricultural activities, with turnover thresholds determining mandatory or optional membership.
VAT regimes applicable to farmers
Farmers in France are subject to two distinct VAT regimes depending on the nature of their activities. The general VAT regime applies to non-agricultural activities, while the simplified agricultural regime (RSA) applies to pure agricultural activities. The RSA becomes mandatory if annual revenue exceeds €46,000. For lower revenues, joining the RSA is optional. Farmers with annual revenue of €5,300 or less, who derive at least 80% of their total income from agricultural activity, are exempt from VAT.
Activities included and excluded from the RSA
The RSA covers traditional agricultural activities as well as certain primary processing activities, such as cheese making, winemaking, or fruit packaging, provided they are carried out using modern but common agricultural materials. Activities not considered agricultural, such as the processing of non-owned products or services unrelated to agriculture, are subject to the general VAT regime.
Declarative obligations and invoicing
Farmers subject to the RSA must file an annual VAT return by the second working day following May 1. They may also opt for quarterly returns. Regarding invoicing, farmers subject to the RSA must issue invoices according to general rules, but it is tolerated for customers to issue invoices on their behalf, in line with agricultural sector practices.
Annual flat-rate tax
Farmers subject to the RSA must pay an annual flat-rate tax consisting of a fixed part ranging from €76 to €92 and a variable part of 0.19% of turnover up to €370,000 and 0.05% for the excess amount. This tax is calculated based on the turnover of the previous year.
Deadlines and payment methods
The deadline for the annual VAT return under the RSA regime is set for the second working day after May 1. If the accounting year does not coincide with the calendar year, the return must be filed by the fifth day of the fifth month following the end of the accounting year.