The change, introduced under Article 38 of the 2025 Finance Law, replaces the simplified VAT regime with the standard reporting system (régime réel normal). The French tax authority, DGFiP, confirmed the transition arrangements in September 2026.
New monthly and quarterly VAT reporting
Currently, businesses operating under the simplified regime submit one annual VAT return (CA12), generally accompanied by two advance VAT payments in July and December.
From January 2027, these businesses must instead submit VAT returns using Form CA3. The reporting frequency will depend on turnover:
- Quarterly returns: Businesses with turnover not exceeding €1 million in the preceding calendar year and €1.1 million in the current year.
- Monthly returns: Businesses exceeding either threshold.
- Voluntary monthly reporting: Businesses qualifying for quarterly filing may elect to submit monthly returns.
The change does not affect the simplified VAT regime available to agricultural businesses.
Transition arrangements during 2027
Businesses with calendar-year accounting periods must submit their final annual CA12 VAT return for 2026 by 4 May 2027. Their first monthly or quarterly CA3 return will cover January or the first quarter of 2027.
For businesses with non-calendar accounting years, the new arrangements will generally begin after the close of their 2026/27 financial year. Their final annual VAT return must be submitted within three months of that year-end.
The existing system of advance VAT payments will also be phased out. Most affected businesses will not make the usual July or December 2027 payments, although a limited July payment obligation remains for certain businesses with later financial year-ends.
Interaction with France’s e-invoicing and e-reporting reforms
The abolition of simplified VAT reporting coincides with France’s mandatory e-invoicing mandate. From 1 September 2027, SMEs and microenterprises will become subject to B2B e-invoicing and transaction e-reporting requirements.
The frequency of e-reporting will depend on their new VAT reporting regime:
|
VAT regime |
Transaction e-reporting |
Payment e-reporting |
|---|---|---|
|
Monthly VAT returns |
Every 10 days |
Monthly |
|
Quarterly VAT returns |
Monthly |
Monthly |
Businesses must inform their accredited e-invoicing platform (plateforme agréée) of their new VAT reporting regime to ensure the correct electronic reporting frequency is applied.
The combined reforms mean businesses previously filing one annual VAT return may face four or twelve returns each year, alongside mandatory transaction e-reporting.
France is therefore moving towards more frequent VAT declarations supported by digital transaction data. But e-invoicing will not replace VAT returns. Businesses will still need to e-reconcile their accounting records, invoices and VAT declarations.
See more in our French VAT guide.
