What is the VAT surcharge for farmers in case of threshold exceedance?

Written by Solvo · based on official sources · Published on 3 September 2026

TLDR: The VAT due by taxable agricultural operators who have applied for the franchise regime (Art. 298 bis A CGI) is increased by 25% if their turnover, including all duties and taxes, exceeds three times the franchise threshold.

Conditions of application

The 25% surcharge applies only to agricultural operators who have submitted a request to benefit from the franchise regime provided for in Article 298 bis A of the CGI. It is triggered as soon as the turnover achieved exceeds three times the franchise threshold.

Legal basis

The provision is expressly set out in Article 1785 D of the CGI, which establishes both the surcharge rate and the condition of exceeding three times the franchise threshold.

Subjective scope

Only agricultural operators subject to VAT and who have applied for the franchise regime are concerned. No other category of farmers or operators is covered by this surcharge.

Calculation of the surcharge

The surcharge is applied to any tax due, without distinction based on the type of activity or product. The turnover to be considered includes all duties and taxes, with the exception of VAT itself.

Exclusions and limits

No exceptions are provided for the agricultural operators concerned. The surcharge is automatic as soon as the exceedance condition is met, with no possibility of derogation.

Practical consequences

Exceeding the triple threshold results in an immediate increase in the tax due, with no grace period or transitional phase. Operators must anticipate this risk in their financial management.

This content is for informational purposes only and does not constitute personalised tax advice.

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Official sources

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