French accountant for bar-tabac businesses: tobacco commission without VAT, bar VAT at 20%, 10% and 5.5%, FDJ and PMU commissions, drinks licence, secure till, HCR payroll and business sale.
A bar-tabac mixes activities the tax code treats very differently: tobacco sales and the retailer's commission fall outside VAT, the press distributor's commission is not subject to VAT, while the bar and confectionery follow ordinary VAT rules and FDJ and PMU commissions are taxed at 20%. A specialist accountant separates these flows correctly, handles the RAVGDT pension scheme and the Customs management contract, and avoids the classic BNC versus BIC misclassification.
A chartered accountant for a French bar-tabac keeps books in which four regimes coexist: the café-bar, subject to VAT and the HCR collective agreement; the tobacco outlet, run under a contract with French Customs and paid through a commission that falls outside VAT; FDJ and PMU gaming, where stakes go to the operator and only the commission stays with the retailer; and often press, sold on consignment for publishers. All of it runs on tight cash management, with a till covering several product families and a lot of cash.
Poorly structured bar-tabac accounting creates concrete risks: VAT badly split across rates (20%, 10%, 5.5%), tobacco cash booked as turnover, VAT on FDJ and PMU commissions mishandled, a non-secure till exposing a €7,500 fine, and the HCR agreement misapplied on bar payroll. Hayot Expertise supports tobacco retailers, café-tabac owners and buyers of bar-tabac businesses to secure these flows and produce a reliable read of the result.
One of the specificities of a bar-tabac is the legal nature of the tobacco activity. The retailer does not resell tobacco at a margin: tax doctrine describes them as a mere depositary of the goods delivered by approved suppliers. They sell at the approved retail price and receive in exchange a commission (remise), calculated on the amount of deliveries at that retail price.
Since 1 January 2026, for all tobacco categories, the gross commission is 10.29% of deliveries in mainland France. It splits into a net commission of 8.35% credited to the retailer, a 1.78% licence duty and a 0.16% contribution to the tobacconists' life annuity scheme (RAVGDT), under article 56 AJ of annex IV to the French Tax Code. It is the only tobacco income. For income tax, the commission is in principle non-commercial profit (BNC, article 92 of the French Tax Code); it is taxed with the bar as business profit (BIC) when the tobacco outlet is an extension of a predominant commercial activity (article 155).
Unlike bar sales, tobacco sales do not generate collected VAT for the retailer. VAT on tobacco products is paid by the supplier, on the retail price. The shelf price is the inclusive retail price; the retailer has no obligation to declare collected VAT on this activity.
The commission falls outside VAT as well. French tax guidance says so in plain terms: sales by tobacco retailers escape VAT, and so do the commissions allocated to them (BOI-TVA-BASE-10-20-70, § 50). Only the surcharge that an authorised reseller (hotel, restaurant, drinks outlet) adds above the regulated price is subject to the standard rate.
Practical accounting consequence: tobacco income is the commission, not the gross tobacco cash collected at the till. Tobacco receipts flow through third-party accounts and are not turnover for the operator. For the micro-business thresholds, the tax authority counts gross commissions, not tobacco takings.
We set up accounts clearly separating:
This setup prevents revenue inflation from gross tobacco cash and delivers a fair read of each activity's profitability.
A bar-tabac combines several VAT rates and receipts without VAT in a single trading day:
| Activity | VAT | Example or basis |
|---|---|---|
| Soft drinks consumed on premises | 10% | Coffee, tea, fruit juice |
| Soft drinks to take away, in a bottle or can | 5.5% | Bottle of water, can of soda |
| Alcoholic drinks | 20% | Beer, wine, spirits |
| Sandwiches and food for immediate consumption | 10% | Sandwich, salad sold with cutlery |
| Pastries and sweet bakery goods to take away | 5.5% | Croissant, pain au chocolat |
| Confectionery and sundry sales | 20% | Chewing gum, lighters |
| FDJ retailer commission | 20% | For the lottery, VAT paid by FDJ under conditions (BOI-TVA-LIQ-20-20, § 350) |
| PMU outlet commission | 20% | Article 261 E: stakes and winnings exempt, commission taxed |
| Tobacco sales and retailer commission | No VAT at the retailer | VAT paid by the supplier on the retail price |
| Press distributor commission on consignment | No VAT | Article 298 undecies; CPPAP titles at 2.1% at the publisher |
The French Tax Code articles cited on VAT will be renumbered on 1 January 2027, when VAT moves into the code of taxes on goods and services (CIBS), largely without change in substance.
Till setup errors are a classic source of VAT reassessment. If a product family is mapped to the wrong rate, the error repeats on every sale and accumulates for years before surfacing in an audit.
From the start of the engagement, we audit the till configuration (Lightspeed, L'Addition, Tiller, Zelty, or specialist HCR till) and check that each product family is on the right rate. We also check that the till holds a certificate from an accredited body or the publisher's individual attestation, accepted again since 21 February 2026 (article 286, I-3° bis of the French Tax Code).
Non-compliance penalty: a €7,500 fine per non-compliant software or till system (article 1770 duodecies of the French Tax Code). In an audit, an unreliable till also weakens the evidential value of the accounts.
Each month we produce a VAT control table reconciling:
This monthly reconciliation limits drift and brings out mismatches between till sales and bank receipts, a possible sign of a parameter error or a missed reconciliation.
A bar-tabac approved by FDJ earns a commission on game sales (Loto, EuroMillions, scratch cards). Stakes and winnings are exempt from VAT, but the retailer's remuneration is not: the commission is subject to 20% VAT (article 261 E of the French Tax Code, BOI-TVA-CHAMP-30-10-10). For the lottery, tax guidance exempts the retailer from paying this VAT when FDJ pays it on the retailer's behalf and the agency conditions are met (BOI-TVA-LIQ-20-20, § 350): the treatment is checked on FDJ statements before each return.
FDJ accounting flow:
For PMU, the licensed bar-tabac collects bets, remits them to PMU and keeps a commission. It is subject to 20% VAT (BOI-TVA-LIQ-20-20, § 340), which the outlet collects and declares itself: the exemption for lottery intermediaries (§ 350) does not cover PMU. Flows are reconciled with monthly PMU statements and matching bank movements.
A watch-point: winnings paid to winning bettors are not a bar-tabac expense. Depending on the arrangement, PMU pays them directly or charges them to the point-of-sale account: accounting records them in third-party accounts, never as operating expenses.
If the bar-tabac is a press retailer, newspaper and magazine sales operate on consignment for publishers, through press distribution companies such as France Messagerie or MLP: the retailer does not buy the titles, they display them for sale and return unsold copies. Their income is a commission on net sales.
Specific accounting points:
Selling alcohol for consumption on the premises requires a drinks licence. For a bar-tabac, the licence held directly conditions the drinks activity:
Market value: the price of a category IV licence varies widely with location, local licence supply and protected zones around schools or places of worship, set by prefectoral order (article L3335-1 of the French Public Health Code). Our article on the category IV licence covers price, transfer and operating permit.
When the licence has been purchased for value (acquired with the business sale), it is recorded as an intangible fixed asset on the balance sheet. It is not amortisable for tax (indefinite life), but can be impaired if market value falls.
In a business sale, the licence price must be clearly identified in the deed, to calculate the capital gain on the licence separately from the rest of the goodwill.
The national collective agreement for hotels, cafés and restaurants (IDCC 1979) applies to bar-tabacs whose main activity is the café or catering; its scope expressly covers café-tabacs. It requires:
Watch-point: HCR grid errors (under-classification, missed step progression, overtime paid without the right premium) expose the employer to URSSAF reassessments and employment tribunal claims. In a sector with high staff turnover and many extras, every hire and every casual contract needs checking.
In a bar-tabac, payroll is measured against turnover excluding tobacco, since tobacco generates little value added. The total cost of an employee is often underestimated: gross salary, employer contributions (whose effective rate depends on the pay level under the single degressive general reduction in force since 1 January 2026), healthcare, provident scheme, benefits in kind and training.
For each role, we calculate the fully loaded annual cost and compare it with revenue by activity (bar, tobacco, FDJ/PMU, press) to flag time slots or activities that fail to cover their staffing cost.
| Indicator | Calculation | What it shows |
|---|---|---|
| Bar gross margin | (Drinks turnover − drinks cost of goods sold) / Drinks turnover | Losses, unrecorded freebies, purchase price drift |
| Weight of the tobacco commission | Commission / total income | Dependence on tobacco |
| FDJ and PMU commissions | Commissions / total income | Revenue diversification |
| Payroll | Staff cost / non-tobacco turnover | Staff productivity |
| Weekly cash | Bank balance after paying the tobacco supplier, VAT and payroll | Ability to meet deadlines |
| Average VAT rate | Output VAT / net turnover, each month | Consistency between the till and the CA3 return |
These indicators are calculated on the business's own accounts; no public source sets a sector norm for a bar-tabac. They quickly surface a drinks-margin issue (theft, unrecorded freebies, drifting purchase price), a drop in tobacco commissions as volumes fall, or a deteriorating payroll ratio.
Selling a bar-tabac is not like selling an ordinary business. Three prior steps condition the transfer:
Customs approval for the new tobacco retailer: the buyer must be approved by the Direction générale des douanes et droits indirects (DGDDI). They run the outlet as a sole trader or within a general partnership (SNC) whose partners are all individuals, and must in principle own the business to which the outlet is attached (decree no. 2010-720, articles 3 and 4). Without this approval, they cannot sign a management contract or take over the outlet.
Drinks licence transfer: declaration at the town hall, or at the Préfecture de police in Paris, at least fifteen days before the transfer (article L3332-4 of the French Public Health Code), and an operating permit for the buyer, obtained after a training course of at least 20 hours, valid for ten years and then renewable through a 6-hour course.
FDJ and PMU approval for the buyer: each operator validates the new point of sale and signs its own contract with the buyer.
A bar-tabac's price builds on several separately valued components:
Capital-gains tax: gains are taxable under IS or IR depending on the operator's tax regime. Two exemption regimes can apply after five years of activity: article 151 septies of the French Tax Code, reserved for businesses subject to income tax (full exemption when receipts of a sales activity do not exceed €250,000, partial up to €350,000), and article 238 quindecies (full when the value of the transferred assets does not exceed €500,000, partial up to €1,000,000). We simulate exit taxation upfront to optimise the deal structure. For an opening or a takeover, see also our article on opening a bar-tabac.
The first 90 days set the bar-tabac under reliable steering:
A frequent mistake. The owner collects the tobacco retail price at the till, but the cash goes to the supplier. Only the commission is income, and it falls outside VAT. Booking gross cash as turnover inflates revenue and distorts the ratios; if the till codes tobacco with a VAT rate, it also shows VAT that is not due.
FDJ and PMU commissions are subject to 20% VAT, while stakes and winnings are exempt. For the lottery, FDJ may pay this VAT on the retailer's behalf, under the conditions of BOI-TVA-LIQ-20-20 (§ 350); for PMU, the outlet collects and declares it itself. Leaving out VAT on a commission that bears it creates a reassessment risk in an audit: each operator's statement is reconciled before every return.
Putting all drinks at 20% instead of splitting alcoholic and non-alcoholic drinks, or selling sandwiches at the pastry rate, creates VAT errors that build up year after year.
Under-classifying a bar employee (level I instead of level II), missing automatic step progression, poorly compensating work on public holidays or misbooking meal benefits are mistakes that expose the operator to URSSAF reassessment.
Failing to identify the licence IV value separately in the sale price complicates valuation for the buyer and their bank.
A bar-tabac runs several businesses through a single till, and reading the accounts as one block hides how each of them performs. Because tobacco is booked only on the commission and never on the gross cash that passes over the counter, the tobacco line can look small next to drinks, even though tobacco receipts pass through the same till every day. That is why we rebuild the profit and loss account activity by activity: bar and drinks, tobacco, FDJ and PMU, and press.
Each activity carries its own economics. The drinks margin is followed on a line of its own. Tobacco brings volume but little value added: once staff time is allocated to it, its real contribution can be measured rather than assumed. FDJ, PMU and press add commission income with almost no purchase cost, yet each settles on its own calendar: weekly debits for FDJ, periodic statements for PMU and the press distributors.
Splitting the result this way answers practical questions: which counter hours pay for themselves, and which activities fail to cover their staffing cost. On the drinks line, it flags theft, unrecorded freebies and a purchase price that has drifted upward; on the tobacco line, it flags a drop in the commission as volumes fall.
Hayot Expertise combines chartered-accounting expertise, HCR tax knowledge, HCR payroll, command of FDJ/PMU/Tobacco flows and sale support. We know the specifics of the tobacco activity (depot status, net remise, DGDDI approval) and the mechanics of bars (multi-rate VAT, secure till, HCR agreement, seasonality).
You get a dedicated chartered accountant, rigorously controlled VAT returns, monthly margin and cash monitoring, compliant HCR payroll, and full support if you plan to acquire, develop or sell your business.
Ask for an accounting and tax diagnostic of your bar-tabac. We review your VAT setup, your tobacco accounting, your FDJ/PMU flows, your HCR payroll and your cash to put your business under reliable steering in under 30 days.
Free quote within 24 hours. First meeting on the house, on site or in our Paris 8th office, to map quick wins (till parameterisation, distributor reconciliation, payroll compliance) and to define a clear engagement scope matched to your turnover, your team and your transmission horizon.
Credited to the retailer on tobacco deliveries, mainland France, since 1 January 2026
8.35%
Net commission 8.35% + licence duty 1.78% + RAVGDT contribution 0.16% (article 56 AJ, annex IV)
10.29%
Retailer sales and commission without VAT; VAT paid by the supplier on the retail price
No VAT
Stakes and winnings exempt, retailers' remuneration taxed (article 261 E); for the lottery, VAT paid by FDJ under conditions (BOI-TVA-LIQ-20-20, § 350)
20% VAT
Registered agent retailer's commission (article 298 undecies); CPPAP titles at 2.1% at the publisher
No VAT
Sandwich 10%, pastry and soft drink in a bottle or can 5.5%, confectionery 20%
10%, 5.5%, 20%
Signed with French Customs for three years, tacitly renewable (decree no. 2010-720, article 2); new templates since 1 October 2025 (order of 29 August 2025)
3 years
2023-2027 protocol: 50% of eligible costs excluding VAT if prior-year tobacco turnover does not exceed €500,000, 30% above; applications until 30 September 2027
€33,000 maximum
France has about 22,800 tobacconists (OFDT, 2025 review), the agents through which the State exercises its retail monopoly on tobacco. The network shrinks as tobacco consumption falls, and outlets offset this with gaming, press, light catering and local services. A bar-tabac remains a high-volume business: its profitability depends on accounts that keep each regime apart, a well-split VAT and tightly managed HCR payroll.
Full tobacco sales receipts are not the owner's revenue. Only the commission (10.29% gross in 2026, of which 8.35% net is credited after the licence duty and the RAVGDT contribution) is income, and it falls outside VAT. Tobacco cash must flow through third-party accounts and then be paid over to the supplier. Recording gross receipts as turnover inflates revenue and distorts the ratios.
Assign 10% to soft drinks served on premises and sandwiches, 20% to alcoholic drinks and confectionery, and 5.5% to pastries to take away and soft drinks to take away in a bottle or can; tobacco, its commission and the press commission stay outside VAT. The register must be secure (certificate from an accredited body or the publisher's individual attestation). Run a parameterisation audit at the start of each engagement.
FDJ and PMU commissions are subject to 20% VAT, but not always in the same way: for the lottery, FDJ may pay the VAT on the retailer's behalf, under the conditions of BOI-TVA-LIQ-20-20 (§ 350); the PMU outlet declares the VAT on its own commission. Reconcile each commission with the operator's statements; stakes and winnings stay exempt.
Three prior steps condition the sale: Customs approval of the buyer, transfer of the drinks licence, new FDJ and PMU contracts. Identify separately the leasehold rights, goodwill (including the tobacco part, often expressed as a multiple of the annual commission), drinks licence value and tangible assets. Capital gains can be fully or partly exempt after five years of activity: article 151 septies of the French Tax Code depending on receipts (businesses subject to income tax), article 238 quindecies depending on the value of the transferred assets.
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Samuel Hayot is a French chartered accountant registered with the Ordre of Paris Île-de-France, and a statutory auditor on the list drawn up by the H2A, member of the CRCC de Paris.
The firm is based in Paris 8 and operates with a delivery model designed for businesses located across France.
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Tobacco management contract, Class III/IV alcohol licences, mandatory training, the 8.35% net tobacco remise and the sole trader or SNC rule: what to check before opening a French bar-tabac.
Licence III or IV, mandatory operating permit (20 hours, valid 10 years), transfer and relocation at the town hall, market value and bookkeeping (account 206/208): the 2026 technical guide for opening or buying a cafe-bar.
Sector benchmarks, EBITDA multiples 3-7x, DCF, adjusted net assets and earnings capitalisation: the five methods to value a French goodwill and the role of a chartered accountant in Paris in 2026.
Tax doctrine describes the retailer as a mere depositary of the tobacco delivered by approved suppliers: their only tobacco income is the commission. In 2026 the gross commission is 10.29% of deliveries, of which 8.35% net is credited after the licence duty and the RAVGDT contribution. Tobacco takings flow through third-party accounts; only the commission is income, and it falls outside VAT. For income tax, it is in principle non-commercial profit (BNC), and business profit (BIC) when the tobacco outlet is an extension of a predominant commercial activity such as a bar (article 155).
Since 1 January 2026, for all tobacco categories, the retailer's gross commission is 10.29% of deliveries in mainland France (article 56 AJ of annex IV to the French Tax Code). It splits into an 8.35% net commission credited to the tobacconist, a 1.78% licence duty and a 0.16% contribution to the tobacconists' life annuity scheme. The commission is calculated on the approved retail price and falls outside VAT (BOI-TVA-BASE-10-20-70, § 50).
A bar-tabac applies 10% to soft drinks consumed on premises and to sandwiches, 20% to alcoholic drinks and confectionery, and 5.5% to pastries and sweet bakery goods sold to take away and to soft drinks sold to take away in a bottle or can. FDJ and PMU commissions are subject to 20% VAT (for the lottery, FDJ may pay it on the retailer's behalf). Tobacco and the retailer's commission fall outside VAT at the tobacconist, and the commission of a registered press retailer is not subject to VAT; CPPAP press titles are taxed at 2.1% at the publisher. Till settings must follow these families.
Yes, at 20%. Stakes and winnings are exempt, while article 261 E of the French Tax Code excludes intermediaries' remuneration from the exemption (BOI-TVA-CHAMP-30-10-10). For the lottery, tax guidance exempts the retailer from paying this VAT when FDJ pays it on the retailer's behalf and the agency conditions are met (BOI-TVA-LIQ-20-20, § 350). For PMU, the outlet collects and declares the VAT on its own commission. Each commission is reconciled with the operator's statements and bank movements.
Selling a bar-tabac involves three prior steps: Customs (DGDDI) approval of the buyer, who runs the outlet as a sole trader or in a general partnership of individuals and signs a management contract; transfer of the drinks licence (declaration at the town hall, or at the Préfecture de police in Paris, at least fifteen days before, plus the buyer's operating permit); and new FDJ and PMU contracts, subject to their approval. The price combines goodwill, leasehold rights, licence, drinks stock (valued separately), equipment and fittings. Capital gains are taxed under IS or IR depending on the operator's tax regime, with full or partial exemption possible after five years of activity: article 151 septies of the French Tax Code depending on receipts (businesses subject to income tax), article 238 quindecies depending on the value of the transferred assets.
Under micro-BIC, bar turnover (sales of drinks and food) gets a flat 71% allowance, below a €203,100 threshold for 2026 to 2028; services get a 50% allowance and an €83,600 threshold (article 50-0 of the French Tax Code). For tobacco, gross commissions, not takings, count towards the thresholds. The real regime deducts actual costs: rent, payroll, drinks purchases, contributions, depreciation, fees. With commercial rent, HCR payroll and significant supplies, the real regime is often more favourable. We systematically compare both regimes at the first diagnostic.
The HCR collective agreement (IDCC 1979), whose scope expressly covers café-tabacs, applies to all staff when the main activity is the café or catering, including employees assigned to tobacco or press; the APE code is only an indication. It sets salary grids, overtime rules, the meal benefit in kind (€4.35 per meal since 1 June 2026), the use of casual workers (fixed-term “usage” contracts), night work and the branch provident scheme. We confirm the applicable agreement from the main activity actually carried on.
The drinks licence (category III or IV depending on the drinks allowed, category II having been merged into category III in 2016) is an administrative authorisation attached to the business. It carries significant market value, particularly the category IV licence, and can be sold separately or with the business. In the accounts, it is an intangible fixed asset when acquired for value. It is not amortisable (indefinite life) but can be impaired if market value falls. Its value must be identified separately in a sale to allocate the price between goodwill, leasehold rights and licence.
Press is taxed at the publisher: 2.1% for publications meeting the CPPAP conditions, dailies and magazines alike, the standard rate otherwise. A retailer selling on consignment as a registered agent does not own the titles: it earns a commission that is not subject to VAT (article 298 undecies of the French Tax Code) and returns unsold copies. Distributor statements arrive with a lag that requires a dedicated reconciliation.
Yes, as soon as it records payments from private customers in software or a till. Since 1 January 2018 (article 286, I-3° bis of the French Tax Code), a VAT-registered business that records payments from non-taxable customers this way must use a system that guarantees the data cannot be altered and is secured, kept and archived, unless it falls under the VAT franchise. Compliance is evidenced by a certificate from an accredited body or by the publisher's individual attestation, accepted again since 21 February 2026 (2026 Finance Act, article 125). The fine is €7,500 per non-compliant software or system.
A tobacco outlet is run by a sole trader or within a general partnership (SNC) whose partners are all individuals (decree no. 2010-720, article 3): an SARL or SAS cannot hold it. The sole-trader tobacconist, like an SNC partner, is self-employed: social contributions are calculated on profit and collected by Urssaf. The tobacconist also contributes to the tobacconists' life annuity scheme (RAVGDT), deducted from the commission. We run a comparative simulation based on profit level and chosen structure.
Chartered Accountant, registered with the Institute of Chartered Accountants. Certified Pennylane trainer.
Regulated French accounting firm based in Paris 8, whose founder is also a statutory auditor, built to support companies across France with a digital and decision-oriented approach.
Official and operational sources cited for this page.