TVA (taxe sur la valeur ajoutée) is France's version of VAT, and getting your regime right from the start avoids both unnecessary admin and unexpected liabilities. This guide explains the franchise en base exemption, the two main real regimes, intra-EU obligations, and how returns are filed.
What is TVA?
TVA is a consumption tax added to most goods and services in France. Businesses collect TVA on their sales, deduct the TVA on their purchases, and remit the difference to the tax authorities (the DGFiP).
The franchise en base de TVA
Small businesses whose turnover stays below certain thresholds can benefit from the franchise en base — meaning they neither charge nor reclaim TVA. This simplifies administration but prevents you from recovering TVA on your costs.
| Regime | Who it suits | TVA charged? | Filing |
|---|---|---|---|
| Franchise en base | Very small businesses under thresholds | No | None for TVA |
| Réel simplifié | SMEs with moderate turnover | Yes | Annual return with instalments |
| Réel normal | Larger or fast-growing businesses | Yes | Monthly or quarterly returns |
Choosing between réel simplifié and réel normal
- Réel simplifié reduces admin with an annual return (CA12) and two instalments during the year.
- Réel normal requires monthly (or quarterly) returns (CA3) but gives faster TVA recovery.
- Fast-growing businesses and those with large TVA credits often prefer réel normal.
Intra-EU trade and the VAT number
If you trade with businesses in other EU countries, you'll need an intra-community VAT number (numéro de TVA intracommunautaire) and must comply with reporting obligations such as the DEB/DES declarations for goods and services.
Filing your TVA returns
- Register for TVA and obtain your intra-community number if trading in the EU.
- Issue compliant invoices showing the correct TVA rate.
- File CA3 (réel normal) or CA12 (réel simplifié) on time.
- Reconcile collected and deductible TVA each period.
- Submit DEB/DES declarations where relevant.
Common mistakes to avoid
The pitfalls we see businesses run into most often on this topic.
- Staying on the franchise en base when large VATable costs mean you'd benefit from recovering TVA.
- Exceeding the thresholds without switching regime and charging TVA in time.
- Trading with EU businesses without an intra-community VAT number.
- Applying the wrong TVA rate to products or services.
- Missing CA3 or CA12 filing deadlines.
Frequently asked questions
How Stratancy can help
Stratancy helps you choose the right TVA regime from the outset, registers you for TVA and your intra-community number, and manages your CA3 or CA12 returns along with any DEB/DES declarations. We configure your accounting so TVA is captured correctly on every invoice and reconciled each period. For cross-border and international founders, we make French VAT straightforward and fully compliant.