Subcontracting Invoicing in France 2026: VAT Reverse Charge in Construction, Mandatory Mentions and the 1975 Subcontracting Act
VAT reverse charge in French construction (CGI art. 283 nonies), mandatory invoice mentions, direct payment under the 1975 Subcontracting Act, performance bonds and the distinction between subcontracting and service provision: a practical guide by Hayot Expertise, Paris.
Expert note: This article was written by our chartered accountancy firm. Information is current as of 2026. For a personalised review of your situation, contact us.
Up to date as of 15 May 2026.
Subcontracting Invoicing in France 2026: VAT Reverse Charge in Construction, Mandatory Mentions and the 1975 Subcontracting Act#
Subcontracting sits at the heart of the French construction sector's business model, yet it also generates a disproportionate share of VAT errors, tax reassessments and payment disputes. Two separate regimes apply simultaneously: the fiscal rule on VAT reverse charge (CGI art. 283 nonies) and the contractual protection framework of Law no. 75-1334 of 31 December 1975. Misunderstanding either one can expose a business to VAT surcharges, penalties or loss of the right to direct payment.
This operational guide from Hayot Expertise (Paris) sets out the legal framework, distinguishes the applicable situations, details mandatory invoice mentions, and illustrates the differences between construction and intellectual services through two practical case studies.
Quick summary: In French construction subcontracting, the main contractor — not the subcontractor — self-assesses and declares VAT (CGI art. 283 nonies). The subcontractor issues an invoice exclusive of VAT, bearing the mention "Autoliquidation" and the reference "Article 283-2 nonies du CGI". Outside construction, VAT is invoiced normally. In parallel, the 1975 Act requires the subcontractor's acceptance by the project owner and grants the subcontractor a right to direct payment if the main contractor defaults.
1. The Legal Framework: Two Texts That Must Not Be Confused#
Two bodies of rules govern subcontracting in France simultaneously.
Law no. 75-1334 of 31 December 1975 is the framework legislation on subcontracting. It sets out contractual obligations (acceptance, payment-condition approval, performance bonds), the right to direct payment and civil sanctions. It applies to all sectors but finds its primary application in construction.
Article 283 nonies of the CGI introduces a specific VAT mechanism: in construction subcontracting, VAT is not collected by the subcontractor but by the main contractor. This is known as reverse charge or "autoliquidation".
These two texts coexist: one falls under contract law, the other under tax law. A business can comply with one and violate the other.
2. Legal Definition of Subcontracting#
Under the 1975 Act, subcontracting is the operation by which a contractor, under its own responsibility, entrusts to another party — the subcontractor — the performance of all or part of a works contract or a portion of a public contract concluded with the project owner.
In civil law terms, a subcontracting agreement is a contract for work and services (louage d'ouvrage) under article 1779 of the Civil Code, whereby the subcontractor undertakes to carry out defined work for an agreed price.
Three conditions must be met simultaneously:
- The existence of a main contract between the principal contractor and a project owner
- The delegation of a part of that contract to a third party
- The performance of works under the responsibility of the main contractor
3. Subcontracting, Joint Venture, Supplier, Umbrella Employment: Four Situations to Distinguish#
| Situation | Contractual link | VAT | 1975 Act? |
|---|---|---|---|
| Subcontracting | Main contractor → subcontractor | Reverse charge (construction) | Yes |
| Joint venture (co-traitance) | Consortium → client (joint liability) | Standard VAT | No |
| Materials supplier | Seller → contractor | Standard VAT (sale) | No |
| Umbrella employment (portage salarial) | Umbrella company → contractor | Standard VAT (HR service) | No |
A materials supplier who sells without installing is not a subcontractor. The reverse charge does not apply to a pure sale of materials, unless the supply is inseparably linked to the installation (the "complex supply" principle, confirmed by the BOFiP).
A joint venture partner bears joint liability to the client: each member invoices the project owner directly. There is no economic subordination relationship and the 1975 Act does not apply.
Umbrella employment creates no subcontracting relationship. The construction VAT reverse charge does not apply in this structure.
4. VAT Reverse Charge in Construction (CGI art. 283 nonies): Precise Scope#
The reverse charge applies to construction, repair, cleaning, maintenance, transformation and demolition works performed between taxable persons in the building and civil engineering sector. NAF codes 41, 42 and 43 are the primary scope.
It also covers supply of goods with installation where the service is ancillary to the supply.
VAT Reverse Charge — Included and Excluded Cases 2026#
| Case | VAT treatment |
|---|---|
| B2B construction subcontracting (NAF 41-43) | Reverse charge — invoice HT only |
| Supply with installation (integrated service) | Reverse charge if indissociable |
| Construction works billed to a private individual | Standard VAT collected normally |
| Pure sale of materials without installation | Standard VAT 20% |
| Intellectual services (architect, engineering) | Standard VAT 20% |
| Non-construction cleaning | Standard VAT 20% |
| Equipment rental without operator | Standard VAT 20% |
Our reading: The boundary between "supply with installation" and "sale of materials + separate labour" is a source of disputes. Requalifying a contract as a sale to avoid the reverse charge is risky and likely to be challenged during a VAT audit. Secure the correct qualification at the time of drafting the contract.
5. Mandatory Mentions on the Construction Subcontractor's Invoice#
Under article L441-9 of the Commercial Code and the BOFiP guidance, a construction subcontractor's invoice subject to reverse charge must include:
- Invoice number (sequential, unalterable)
- Issue date
- Identity and SIREN of the subcontractor
- Identity of the main contractor
- Precise description of the works
- Amount excluding VAT
- Explicit mention "Autoliquidation"
- Legal reference: "Article 283-2 nonies du CGI"
- No VAT line whatsoever
6. Accounting — Main Contractor (Reverse Charge)#
| Account | Description | Debit | Credit |
|---|---|---|---|
| 604 or 605 | Subcontracting purchases | 10,000 | |
| 401 | Trade payables | 10,000 | |
| 44571 | VAT collected (reverse charge) | 2,000 | |
| 44566 | Deductible VAT on acquisitions | 2,000 |
Net cash effect is nil, but the 2,000 euros must be declared on the CA3 return.
7. Accounting — Subcontractor#
| Account | Description | Debit | Credit |
|---|---|---|---|
| 411 | Trade receivables | 10,000 | |
| 706 or 611 | Revenue | 10,000 |
No VAT collected, nothing to declare on CA3 for this transaction.
8. Subcontractor Protection: Acceptance, Approval and Performance Bond (Law 75-1334)#
The main contractor must submit each subcontractor to the project owner for acceptance and have the payment conditions approved. This obligation applies to both public contracts and private contracts exceeding 600 euros excluding VAT. Without acceptance and approval, the subcontractor loses the right to direct payment.
For contracts exceeding 600 euros excluding VAT, the main contractor must provide either a bank guarantee or a payment delegation from the project owner.
9. Direct Payment: The Subcontractor's Ultimate Protection#
Article 12 of the 1975 Act provides the subcontractor with a direct action against the project owner when the main contractor fails to pay. This requires acceptance and approval, a formal notice unanswered within 15 days, and notification to the project owner.
The under-estimated risk: In private contracts, many subcontractors delay acting and allow their claim to become time-barred. The standard limitation period is five years.
10. In Practice: Two Illustrative Cases#
Case 1 — Construction Company Paris 18th, Structural Works at 50,000 Euros Excluding VAT#
A general contractor (NAF 4120A) subcontracts structural works to an independent mason for 50,000 euros excluding VAT. Mason's invoice: 50,000 euros HT — "Autoliquidation" — "Article 283-2 nonies du CGI" — no VAT. The contractor declares 10,000 euros self-assessed VAT on CA3 (simultaneously deductible). The mason must be accepted by the project owner and a performance bond must be in place.
Case 2 — Digital Agency Paris 11th, React Development at 15,000 Euros Excluding VAT#
A web agency (NAF 6201Z) subcontracts React development to a freelance developer (NAF 6202A) for 15,000 euros excluding VAT. Invoice: 15,000 euros + 20% VAT = 18,000 euros TTC. No "Autoliquidation" mention — inapplicable outside construction. The agency recovers 3,000 euros VAT on its next CA3.
11. Our Analysis: Most Frequent Errors Seen in Practice#
- VAT invoiced by the construction subcontractor: Adds a 10-20% VAT line by reflex. The main contractor cannot deduct wrongly charged VAT on a reverse-charge transaction.
- Missing "Autoliquidation" mention: Invoice is non-compliant; deduction may be challenged in a VAT audit.
- Failure to obtain acceptance: Subcontractor loses its direct action against the project owner.
- Confusion between subcontracting and advisory mission: The 1975 Act protection may be entirely absent.
- Invoicing software not configured: Must create a specific "BTP subcontracting — reverse charge" invoice type.
12. What the Tax Authority Examines#
During a VAT audit in construction, inspectors systematically review NAF code consistency, presence of mandatory mentions, correct CA3 declaration of self-assessed VAT, and existence of signed subcontracting contracts with acceptance documents. Source: BOFiP BOI-TVA-DECLA-10-10-20.
Compliance Points for 2026#
- CGI article 283 nonies is stable for 2026.
- Electronic invoicing mandate is being phased in (implementation timeline to be confirmed by decree). Reverse-charge invoices will need to be issued via a registered platform (PDP or public portal) with the "Autoliquidation" mention in structured data.
- The 1975 Act has not been substantively amended in 2025-2026 (to be verified on Légifrance).
Sources: Légifrance — Law no. 75-1334 of 31 December 1975; CGI art. 283 nonies; Civil Code art. 1779; Commercial Code art. L441-9; BOFiP BOI-TVA-DECLA-10-10-20. Written and reviewed by Samuel Hayot, expert-comptable in Paris. Up to date as of 15 May 2026.
Frequently asked questions
Qu'est-ce que l'autoliquidation TVA en sous-traitance BTP ?
L'autoliquidation TVA BTP (CGI art. 283 nonies) est un mécanisme selon lequel c'est l'entrepreneur principal — et non le sous-traitant — qui collecte et déclare la TVA sur les travaux de sous-traitance. Le sous-traitant facture HT avec la mention "Autoliquidation" et la référence à l'article 283-2 nonies du CGI.
Quelles mentions obligatoires doit comporter la facture d'un sous-traitant BTP ?
La facture d'un sous-traitant BTP soumis à autoliquidation doit obligatoirement mentionner : le montant HT, la mention explicite "Autoliquidation", la référence "Article 283-2 nonies du CGI", l'identité des parties, la nature des travaux, la date d'exécution, et toutes les mentions classiques d'une facture (article L441-9 du Code de commerce).
L'autoliquidation TVA s'applique-t-elle à toutes les entreprises BTP ?
Non. L'autoliquidation TVA BTP s'applique uniquement aux relations B2B entre professionnels assujettis à la TVA, dans le secteur de la construction (codes NAF 41 à 43). Elle ne s'applique pas aux prestations facturées à des particuliers, ni aux ventes de matériaux sans pose, ni aux prestations intellectuelles sans travaux.
Qu'est-ce que le paiement direct du sous-traitant prévu par la loi de 1975 ?
L'article 12 de la loi n° 75-1334 du 31 décembre 1975 prévoit que le maître d'ouvrage peut payer directement le sous-traitant si l'entrepreneur principal est défaillant. Cette protection s'applique dès lors que le sous-traitant a été accepté et agréé et que le marché dépasse 600 € HT.
Quelle est la différence entre sous-traitance, co-traitance et portage salarial ?
Le sous-traitant est lié contractuellement au donneur d'ordre et réalise une partie du marché principal. Le co-traitant est solidaire du client final dans un groupement. Le portage salarial implique un salarié porté lié à une société de portage : il ne s'agit pas de sous-traitance au sens de la loi de 1975.
Une agence digitale qui sous-traite du développement informatique doit-elle appliquer l'autoliquidation TVA ?
Non. L'autoliquidation TVA prévue par le CGI art. 283 nonies est strictement réservée au secteur de la construction (BTP, codes NAF 41-43). Une agence digitale qui sous-traite du développement React ou du design doit facturer avec TVA au taux normal de 20 %, et le sous-traitant collecte cette TVA.
Article written by Samuel Hayot
Chartered Accountant, registered with the Institute of Chartered Accountants.
Regulated French accounting and audit firm based in Paris 8, built to support companies across France with a digital and decision-oriented approach.
Sources
Official and operational sources cited for this page.
- Légifrance — Loi n° 75-1334 du 31 décembre 1975 relative à la sous-traitance
- Légifrance — CGI art. 283 nonies : autoliquidation TVA sous-traitance BTP
- Légifrance — Code civil art. 1779 : contrat de louage d'ouvrage
- Légifrance — Code de commerce art. L441-9 : mentions obligatoires des factures
- BOFiP — BOI-TVA-DECLA-10-10-20 : autoliquidation TVA dans le secteur du BTP
- Service-public.fr — Sous-traitance : obligations et droits
- Légifrance — Loi 75-1334 art. 12 : paiement direct du sous-traitant
- BOFiP — BOI-TVA-CHAMP-10-10-40 : opérations de construction et autoliquidation
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