Accountant for Veterinary Practices in France

Running the finances of a veterinary clinic in France does not resemble any other healthcare activity. Unlike a GP or a dentist, whose services are largely VAT-exempt under the "care of individuals" rule, a vet is a regulated liberal profession fully subject to 20% VAT on virtually all revenue (small-animal care, surgery, hospitalisation, sales of medication and pet food). This tax specificity, combined with the diversity of practice structures (sole practice, group practice, SELARL, veterinary SAS), the complexity of payroll for partners and salaried vets, and the regulatory requirements of the national veterinary order, makes specialist accounting essential.

Hayot Expertise, based in the heart of Paris (8th arrondissement), supports veterinary clinics across France on their accounting, tax optimisation, legal structuring and growth. This page explains why a specialist accountant matters, what we actually deliver, and how we measure results.

A complex tax framework, often poorly understood#

The first question every new vet asks: BNC or IS? In sole practice, revenue is taxed under the Bénéfices Non Commerciaux (BNC) category, on the controlled-declaration regime (form 2035). This allows the deduction of all real expenses: fees paid out, medication, salaries, CARPV contributions, depreciation of equipment (surgical table, imaging devices, lab analysers). But once profit exceeds €80,000–€100,000 a year, it is often more advantageous to switch to a company subject to IS through a SELARL (the limited-liability liberal company) or a veterinary SAS.

The SELARL is the dominant structure in the sector: it separates director compensation (deductible from IS) from dividends (30% flat tax or election for progressive scale), enables veterinary partners to be brought in, finances equipment through the company, and prepares share-sale transitions. The IS rate of 15% (up to €42,500 of SME profit) and 25% beyond delivers a significant differential for heavily taxed practitioners (marginal tax rate 41-45%).

VAT is a major specificity: unlike doctors, veterinary care does not qualify for the VAT exemption set out in article 261-4-1° of the French tax code (reserved for "care of individuals"). A clinic generating €500,000 of turnover collects roughly €100,000 of VAT a year (at 20%), which it pays over to the State after deducting input VAT on purchases (medication, equipment, consumables). Mismanaging VAT returns (monthly or quarterly CA3), missing VAT on medication sales, or making mistakes on investment VAT recovery can be very costly in penalties.

Specific payroll: roles, agreement and partners#

A veterinary clinic typically employs several staff categories: salaried veterinarians (under the IDCC 1875 collective agreement on veterinary practices and clinics), specialist veterinary nursing assistants (ASV), receptionists and clinical aides. The agreement imposes role classifications, minimum salaries by coefficient, seniority bonuses and sector-specific training rights. A specialist accountant secures payslip compliance, DSN filings and contributions to the sector's provident and supplementary-retirement funds.

For veterinary partners (co-managers or non-manager partners of a SELARL), the situation is more complex still: their social status (TNS or assimilated-employee depending on role) determines social contributions, health cover and retirement rights. Membership of the CARPV (the veterinarians' pension and provident fund) is mandatory for every registered vet. Its contributions (around €8,000 to €15,000 a year depending on income) must be properly included in cash-flow forecasts and in taxable-profit calculations.

Heavy equipment investments and structuring finance#

A veterinary clinic invests heavily in technical equipment: surgical table (€5,000-€20,000), digital scanner or radiology (€30,000-€150,000), haematology or biochemistry analysers (€10,000-€50,000), anaesthesia equipment, steriliser, etc. These assets are depreciable over 5 to 10 years depending on type. A well-built depreciation schedule reduces the IS taxable base while smoothing the budget impact. The choice between outright purchase (bank financing) and finance lease (immediate deduction of lease payments) is one of the trade-offs we run with every client.

For clinics planning to expand (acquiring a patient base, building a new technical platform, opening a second site), our financing support is decisive: client-base valuation (turnover-multiple or EBITDA-multiple methods), business-plan drafting, bank presentations, financing structuring (classic loan, finance lease, partner contributions).

1. Bookkeeping and annual accounts#

We run your clinic's monthly bookkeeping: entry of supplier invoices (medication, equipment, operating costs), reconciliation of client receipts (card, cash, cheque, pet-insurance third-party payment), monthly bank reconciliation, and VAT calculation. At year-end, we produce the balance sheet, profit and loss and explanatory notes, plus the tax pack (form 2065 for the SELARL, form 2035 for the BNC sole practice).

We integrate with the leading veterinary practice software (Vétosoft, Vétup, Centaur Idexx, Provet Cloud) to automate the upstream feed of client billing and accelerate the monthly close.

2. VAT management — the critical pressure point#

We handle the full VAT cycle: rate parameterisation (20% on care and medication), CA3 preparation and filing, VAT-credit monitoring (frequent in heavy-investment years), and support during VAT tax audits. We also verify proper VAT treatment of ancillary sales (pet food, accessories, veterinary cosmetics).

3. Payroll and HR#

Every month we run payslips for all staff (vets, ASV, receptionists) under IDCC 1875. We manage monthly DSN filings, URSSAF declarations, mandatory provident and healthcare cover. On hiring, we advise on the right employment contract (CDI, CDD, ASV apprenticeship), employment incentives (apprenticeship, ZFU zones), and we handle termination procedures.

For TNS partners (majority managers of a SELARL), we calculate provisional and final SSI contributions, URSSAF year-end adjustments, and CARPV contributions. We optimise the salary/dividends mix to minimise total social and tax burden.

4. Tax optimisation and structural arbitrage#

We deliver an annual personalised tax-optimisation review:

• BNC / SELARL / SAS arbitrage: comparative IS vs IR simulation with real-savings calculation net of social contributions
• Director compensation: optimising salary (IS-deductible) vs dividends (30% flat tax) given the marginal tax rate and cash needs
• Investments and depreciation: optimal depreciation schedule, purchase vs lease arbitrage, identification of immediately deductible vs capitalisable spend
• Professional capital-gains exemption on sale of the client base (article 238 quindecies CGI, full exemption if turnover < €250,000 for BNC)

5. Structuring and transmission advice#

When a vet wants to bring in a partner, integrate a colleague or prepare succession, we work on:

• Drafting the SELARL articles and shareholders' agreement
• Valuation of the patient base and fixed assets
• Organising the entry of a new partner (share transfer, capital increase)
• Succession planning (capital-gains tax optimisation, retirement timing)

Starting situation (early 2024): Dr Martine V., veterinarian in Boulogne-Billancourt, sole practice. Net turnover: €380,000; BNC profit: €120,000. Total tax burden (IR at 45% marginal + CARPV + SSI): €80,000 per year, i.e. 67% of profit.

Actions taken:

1. Creation of a SELARL with the liberal goodwill contributed at €420,000
2. Director compensation set at €60,000/year
3. Dividends: €40,000/year at the 30% flat tax (€12,000)
4. Goodwill depreciation schedule: €42,000/year over 10 years
5. Director provident contract taken out via the SELARL

Results (2024 financial year):

Legal annual saving: €34,800, or 29% of the initial profit.

The French veterinary market combines around 8,000 clinics and roughly 20,000 registered vets, generating an estimated €3.5 billion of annual turnover. Several dynamics shape the practice owner's economics:

• Consolidation by veterinary groups: international networks (IVC Evidensia, AniCura, Mon Véto, VetPartners) have acquired hundreds of clinics in the last five years, pushing valuation multiples up to 6-8× EBITDA for well-managed practices. Independent owners must increasingly choose between selling to a group or building a partnership that retains independence.
• Pet-insurance penetration is rising sharply: new players (Dalma, Luko, Fidèle) now reach ~10% of French pet owners (vs 5% in 2019), bringing third-party payments into clinic billing flows that need clean accounting treatment.
• Workforce shortages and salary inflation: the IDCC 1875 sector struggles to recruit qualified vets and ASVs. Wage minima have risen 8-12% over 2023-2025, putting payroll-to-revenue ratios under pressure unless service prices follow.
• Compliance and traceability: the ANMV (the French veterinary medicines agency) tightens controls on prescription medicines stored at the clinic — stock must be valued (FIFO or weighted-average), counted annually and reconciled with prescription registers.

These trends make rigorous monthly management more important than ever. A clinic running on annual accounting only misses the warning signs before they hit margin.

1. Missing VAT on medication and pet-food sales#

Some clinics declare VAT on consultations and surgery but forget the 20% rate on medication and pet-food sales. On audit, this typically triggers three years of back-VAT plus penalties. We reconcile VAT collected against practice software output every month.

2. Staying in BNC well past the optimal threshold#

A BNC profit above €100,000 pays heavily on IR + CARPV + SSI. Many vets postpone the move to a SELARL by inertia, losing €20,000-€40,000 of legal savings each year. We deliver an annual comparative simulation as soon as profit exceeds €70,000.

3. Underestimating CARPV provisioning#

CARPV contributions are calculated on N-2 income, with a true-up the following year. A clinic with sharply growing profit can be hit by a heavy contribution call two years later. We provision 20-25% of monthly profit upfront for social and tax obligations.

4. Mishandling third-party payments from pet insurers#

Third-party payments from Dalma, Luko or Fidèle land on the bank account with a delay and a partial discount. Without dedicated bookkeeping rules, receipts get mismatched and the client account ledger drifts. We set up a dedicated journal per third-party payer to clean the reconciliation.

5. Booking equipment as expense instead of asset#

A €40,000 imaging scanner deducted in full in year one looks attractive but is wrong: it should be depreciated over 7-10 years. We rebuild the depreciation schedule for any clinic joining us mid-life so the balance sheet reflects the real equipment fleet.

Whether you are a sole practitioner planning to move into a company, a SELARL partner looking to optimise compensation, or a project owner preparing the opening of a clinic, Hayot Expertise is your reference partner. Free diagnostic — 24-hour response.