In brief: Use the mention “VAT not applicable” when you benefit from the tax exemption provided for by Article 293 B or Article 293 B bis of the French Tax Code (CGI). Indicate the corresponding legal basis on your invoices, fee notes and equivalent documents.
When to use this mention
You must include the mention “VAT not applicable” on your documents if you are liable for VAT and benefit from the tax exemption provided for by Article 293 B or Article 293 B bis of the French Tax Code (CGI).
What wording to use
The wording depends on the legal basis for your exemption:
- “VAT not applicable, Article 293 B of the CGI”;
- “VAT not applicable, Article 293 B bis of the CGI”.
You may also refer to Article 284 of Directive 2006/112/EC.
Which documents should include it
Include this mention on the invoice, fee note or any other equivalent document issued for your supplies of goods and services covered by the tax exemption.
You must not show VAT on these documents.
Do not confuse the exemption scheme with an exemption
The mention “VAT not applicable” does not apply indiscriminately to all transactions exempt from VAT or outside the scope of VAT.
For an exempt transaction, the invoice must not mention VAT. This rule does not automatically mean that you must use the mention “VAT not applicable”.