VAT registration threshold changes; Sept 2026 e-invoicing mandate; reduced rates; €2 customs admin fee
Latest: 2 February 2026, the French Parliament finally approved the 2026 Budget law, which included a range of VAT and e-invoicing changes.
French VAT and e-invoicing measures passed
VAT: changes registration thresholds, a higher Digital Services Tax, a new €2 levy on low-value consignments; and targeted VAT rate cuts for sport and fair-trade products.
E-invoicing mandate: the 2026 Bill contains key implementation data and process updates in Article 28, the 2026 French e-invoicing & e-reporting.
VAT registration thresholds: reform and counter-reform now frozen
The 2026 Bill revisited France’s VAT registration thresholds (franchise en base de TVA), after earlier controversy around a single low threshold. Several versions have circulated in quick succession:
- The government’s draft Finance Bill set new turnover thresholds from 1 January 2026, building on earlier parliamentary approval to raise the mandatory VAT registration thresholds, for example to around €93,500 for goods/accommodation and €41,250 for services, with a higher limit for legal services.
- During the Assembly debates, MPs adopted an amendment suppressing Article 25 and reinstating the pre-2025 franchise thresholds, reflecting strong political resistance to the reform path.
Sept 2026 e-invoicing and e-reporting mandate updates
A number of changes to the upcoming e-invoicing and e-reporting mandates have been agreed by the Senate and Assembly:
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Platform model consolidated
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“Partner dematerialisation platforms” (PDPs) are formally rebadged as approved platforms (plateformes agréées, PAs), with a reinforced licensing/registration regime. Only PAs listed in the State’s central directory (or the public-sector mutualised solution) can sit in the core e-invoicing/e-reporting flow.
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Sanctions rebalanced for a softer landing:
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Article 28 initially tightened penalties for non-compliance by both taxpayers and PAs, but parliamentary amendment I-1918 rolls back some fine increases and removes the penalty for failing to appoint a PA, signalling a “soft-landing” phase while preserving a credible enforcement framework once the system is live.
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New legal spine for data flows:
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A new Article 290-0 CGI is created to anchor the obligation for PAs to transmit structured invoice and reporting data to the tax administration, with technical and periodicity details to be set by decree.
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Scope and data clarified:
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Article 28 refines the perimeter of e-reporting (B2B, B2C, intra-EU and other cross-border flows, cash-accounted transactions) and confirms that both invoice and, where relevant, payment data must be reported as standardised “data” rather than loosely defined “information”.
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Roles of PAs vs Chorus Pro defined:
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The text clarifies that PAs are the default channel for business e-invoicing and e-reporting, while the Public Invoicing Portal (Chorus Pro/PPF) is focused on B2G/public procurement, avoiding overlap and duplication in the architecture.
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Central directory and switching rules strengthened
Digital Services Tax (DST) increase to 6%: unlikely to survive intact
As part of the 2026 budget debates, the National Assembly approved an amendment doubling France’s Digital Services Tax (the “GAFAM tax”) from 3% to 6% of in-scope French revenue, with a higher global turnover threshold (around €2 billion) for affected groups.
However:
- The government had already indicated that it would seek to remove or dilute this amendment, citing concerns over trade retaliation and international commitments.
- The subsequent rejection of the revenue part of the Bill means the DST hike is only an Assembly amendment to a failed text – not a settled policy.
€2 levy on low-value consignments
The 2026 Finance Bill included an “administrative charge” of €2 per parcel for low-value imports (below €150) shipped from non-EU countries to French consumers and declared under simplified customs procedures.
This national measure was designed as:
- A bridge to the EU’s 2028 customs reform, which will abolish the €150 duty/VAT relief and may itself introduce an EU-wide handling fee of about €2 per parcel from around 2026;
- A way to tackle massive parcel volumes from platforms such as AliExpress, Temu and Shein and perceived under-declaration/fraud on low-value consignments.
Reduced VAT rates for sport and “fair trade” products
During the Assembly debates, MPs adopted a package of socially-oriented VAT amendments, including:
- Harmonising VAT on commercial sports and leisure activities at 10%, to remove perceived inequities between different leisure sectors;
- Reducing VAT for certain farm-gate sales and for products sold under recognised fair-trade schemes, in some cases down towards the super-reduced 2.1% band.
See more in French country VAT guide.
