TLDR: No crédit-bail (financial lease) or location avec option d'achat (lease-to-own) contract grants a specific VAT exemption for freelancers. These contracts are treated as rental operations with a possible subsequent sale, with no distinction based on the tenant’s status. Tax rules apply to the nature of the transaction, not the tenant’s profile.
Legal nature of leasing and lease-to-own contracts
Under French law, crédit-bail or leasing contracts (location avec option d'achat) are not considered transfers of ownership for VAT purposes. They are classified as rental agreements with an option to purchase, where the purchase price takes into account, at least partially, the rent paid. This classification applies regardless of the tenant’s status, including freelancers.
VAT tax treatment
A location avec option d'achat may be treated as a single transaction subject to VAT, unless the contractual and pricing clauses explicitly separate the rental component from the financing component. In such cases, the presumption of a single transaction is overturned, but this does not create a VAT exemption for the tenant.
No specific exemption for freelancers
No tax provision grants a VAT exemption for freelancers based on their status. The rules apply uniformly, whether the tenant is a company, a self-employed professional, or an individual. Any exemptions concern categories of goods or transactions, not tenant profiles.
Special cases: ships and specific operations
Location avec option d'achat contracts for ships may qualify for specific tax regimes, provided they meet the conditions set out in Article L. 313-7 of the Code monétaire et financier (Monetary and Financial Code). These provisions apply to the operations themselves, not to freelancers as a category.
Sector-specific regimes and exceptional deductions
Certain exceptional deductions (e.g., Articles 39 decies, 39 decies A, 39 decies C bis of the CGI – Code général des impôts) apply to assets acquired under crédit-bail or location avec option d'achat, but they provide tax benefits for the tenant or lessee company without creating a VAT exemption. These measures are temporary and conditional.
Limits and clarifications
VAT exemptions for second-hand goods (Article 261 of the CGI) do not apply to goods for which VAT was deductible upon acquisition. This rule is not specific to freelancers but applies to all tenants or purchasers.