VAT in France Explained: Rates, Rules and Franchise (2026)
France operates four VAT (TVA) rates in 2026: 20% standard on most goods and services, 10% on hotels, restaurants, and passenger transport, 5.5% on food and books, and 2.1% on reimbursable medicines and first theatrical performances. Micro-entrepreneurs below the franchise threshold — 37,500 EUR for services or 85,000 EUR for goods — do not charge TVA. Rates are set by the Code général des impôts (CGI) and verified against Légifrance. Consult a tax professional for sector-specific questions.
France's Four TVA Rates
France applies four VAT rates under the TVA (taxe sur la valeur ajoutée) system. Legal references are those of the CGI valid through 31 August 2026; Ordonnance n° 2025-1247 of 17 December 2025 recodifies the CGI from 1 September 2026 without changing any rates. Standard rate 20% (CGI art. 278): applies by default to all goods and services not explicitly listed under a reduced rate — consumer electronics, clothing, and most professional services. Reduced rate A 10% (CGI arts. 279 and 278 quater): hotels, restaurants and takeaway food, passenger transport, home renovation, and non-SS-reimbursable medicines. Reduced rate B 5.5% (CGI art. 278-0 bis): human food (non-alcoholic), print and digital books, disability equipment, energy-efficiency renovation, and solar PV up to 9 kWc. Super-reduced rate 2.1% (CGI arts. 281 quater, 281 sexies, 281 octies): first performances of new theatrical or circus works, registered press, and SS-reimbursable medicines.
Converting HT, TVA, and TTC Amounts
Two simple formulas handle all conversions between HT (hors taxe, excl. VAT) and TTC (toutes taxes comprises, incl. VAT). To add TVA: TVA amount = HT times rate; TTC = HT + TVA. At the standard rate this gives TTC = HT times 1.20. To extract TVA from a TTC price: HT = TTC divided by (1 + rate); TVA = TTC minus HT. At 20% this gives HT = TTC divided by 1.20, and TVA = TTC times 20/120 (equivalently TTC divided by 6). Rounding follows the half-up rule to the nearest euro cent per invoice line. On a mixed-rate invoice, calculate TVA for each line at its applicable rate, total the TVA per rate bracket separately, and sum the bracket sub-totals to reach the grand TVA amount before adding to the grand TTC.
The TVA Franchise: When Small Businesses Are Exempt
Businesses below the TVA franchise en base thresholds are not required to charge, collect, or remit TVA. Invoices must carry the statement 'TVA non applicable — art. 293 B du CGI' (article number valid through 31 August 2026; renumbered from 1 September 2026 by Ordonnance 2025-1247, rates unchanged). The 2026 thresholds are: 37,500 EUR base / 41,250 EUR tolerance for services; 85,000 EUR base / 93,500 EUR tolerance for goods sales. Specific thresholds apply to lawyers and authors. Once a tolerance limit is exceeded, TVA applies from the first day of the month in which that threshold is breached. The business must issue a corrective invoice to the first client from that date.
Mixed Rates, Overseas Territories, and Intra-EU Rules
A single invoice can carry multiple TVA rates. A restaurant bill shows 10% on food and 20% on alcoholic drinks; an energy-renovation invoice may show 5.5% for qualifying insulation work and 10% for non-qualifying repairs. Each line is rated individually and the TVA sub-totals stated separately. The metropolitan French rates (20/10/5.5/2.1%) do not apply in all French territories. Guadeloupe, Martinique, and Reunion have their own TVA structure with a standard rate of 8.5%. Guyane and Mayotte are outside the EU VAT area and apply no VAT. For intra-EU B2B services, the reverse-charge mechanism applies: the French business buyer accounts for TVA at the French domestic rate without the foreign supplier charging it.
FAQ
What goods and services qualify for the 5.5% TVA rate?
The 5.5% rate (CGI art. 278-0 bis) applies to human food (non-alcoholic food and drink), print and digital books, disability equipment and services, energy-efficiency renovation works on existing dwellings, and photovoltaic solar installations up to 9 kWc, among other categories enumerated in the code.
Can a single invoice carry more than one TVA rate?
Yes. For example, food at a restaurant is taxed at 10% but alcoholic drinks on the same bill at 20%. Each item must be rated individually at the applicable rate, the TVA amounts totalled per bracket, and both bracket sub-totals stated separately on the invoice before the combined total.
Do mainland France TVA rates apply in overseas departments?
No. The four metropolitan rates (20/10/5.5/2.1%) do not apply in the overseas departments. Guadeloupe, Martinique, and Reunion operate a distinct TVA regime with a standard rate of 8.5%. Guyane and Mayotte fall outside the EU VAT area entirely and apply no VAT.
What is the legal basis for France's four TVA rates?
The 20% standard rate is set by CGI art. 278; the 10% rate by art. 279 (and art. 278 quater for non-reimbursable medicines); the 5.5% rate by art. 278-0 bis; and the 2.1% rate by arts. 281 quater (theatrical), 281 sexies (press), and 281 octies (reimbursable medicines). These articles are valid through 31 August 2026 and are recodified without rate change by Ordonnance n° 2025-1247 of 17 December 2025, effective 1 September 2026.
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.