VAT exemption regime: 2026 thresholds

Updated March 2026 - The French VAT exemption regime is simple only on the surface. You do not charge VAT, but you cannot recover it on costs and you must monitor turnover closely.

As of March 29, 2026, the official sources available online still point to the following operating thresholds:

• ▸85,000 EUR with a higher threshold of 93,500 EUR for goods and accommodation
• ▸37,500 EUR with a higher threshold of 41,250 EUR for services

The 2025 reform that was supposed to lower these thresholds was suspended and then repealed.

While you remain under the regime, your invoices must mention:

VAT not applicable, Article 293 B of the French Tax Code

You should also prepare for the next step if growth is likely, especially by reading our guides on VAT for SMEs, VAT returns and e-invoicing 2026.

Often yes, especially if you have meaningful VAT-bearing costs, B2B clients or fast growth.

We can model the exemption regime versus standard VAT using your actual cost base.

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The question is not only whether you can stay under the exemption, but whether it is still the right regime for your business.

Unsure whether to stay exempt or register for VAT?
We can secure the decision before invoicing mistakes appear.

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