The French government charges indirect tax in the form of Value Added Tax (VAT) similar to other European countries. The French VAT regulations are based on the European Union (EU) directives.
As a participant in the EU, France is responsible for adhering to the guidelines outlined in the VAT Directives. Further, the French VAT framework is primarily governed by the French Tax Code (CGI).
This article explains all about VAT in France, including what it is, VAT rates, exemptions, registration, and FAQs.
Value Added Tax (VAT) is an indirect tax imposed on selling goods and providing services in France. Unlike direct taxes, businesses collect the VAT and subsequently remit the same to the French National Treasury.
Also, VAT is a significant source of revenue, contributing billions of euros annually and accounting for nearly half of the country's tax income.
Companies making taxable products in France must register for VAT. Further, foreign companies selling goods or providing services in France shall register under VAT. The below table lists the VAT registration thresholds in France:
S No
Type of company
Type of transaction
VAT registration threshold limit