VAT in France | YM Expertise & Audit

VAT in France (TVA): why it’s special, how it’s calculated, and the current rates

Four headline rates on the mainland: 20% (standard), 10% and 5.5% (reduced), plus a super-reduced 2.1% for specific items (e.g., some press and medicines).
Territorial twists:
- Corsica applies special rates on defined goods/services (0.9%, 2.1%, 10%, 13%).
- Overseas Departments (Guadeloupe, Martinique, Réunion) have their own scales (notably an 8.5% standard rate) and sit outside the EU VAT territory, so intra-EU rules don’t apply the same way.

VAT due = VAT collected on sales − VAT deductible on purchases.

Example @20%: Invoice €10,000 HT → collect €2,000 VAT. If your deductible input VAT is €300, you owe €1,700 (= 2,000 − 300).

France distinguishes between goods and services. For services, there’s a notable option that can change your cash flow profile.

VAT generally becomes due at delivery (in practice, commonly the invoicing date).

Default rule (encaissements): VAT becomes due when you get paid (on receipts), including deposits.
Option: TVA au débit: you may opt to have VAT due on invoicing instead—useful if you want to align timing across goods and services.
You can later renounce the option by written notice to your tax office.

France (default for services): VAT is due when you are paid (on receipts), including deposits.

Spain: By default, VAT is due when the service is completed. If you take an advance payment, VAT is due on the advance. Small businesses can opt into a special cash-basis regime (RECC) where VAT is only due when paid.
UK: By default, VAT is due at the time of supply (usually when the service is completed, or invoice date if within 14 days). If you receive a deposit, VAT is due immediately. Smaller businesses can choose the Cash Accounting Scheme to pay VAT only when customers pay.

👉 In short: unlike France, Spain and the UK only let you link VAT to cash receipts if you opt into a special scheme.

Invoice €10,000 HT on 30 Sept; client pays on 30 Oct:

If you opt for tva au débit, you may add the mention « Paiement de la TVA d’après les débits » on invoices (recommended, not mandatory).

Rate	Typical uses
20%	Most goods and services
10%	Some passenger transport, certain renovation works, some medicines
5.5%	Many foods, books, energy in specific cases, disability-related goods/services
2.1%	Certain press publications, some reimbursable medicines

Type	Due date	Notes
Goods	At delivery (often equals invoice date)	Default practice for goods.
Services (default)	On payment received (encaissements)	Cash-flow friendly; deposits included.
Services (option)	On invoice (TVA au débit)	Optional; can be renounced by simple notice.

We advise companies on French VAT registrations, invoicing, and cross-border services.