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Taxation in France

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Taxation in France

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Taxation in France

In France you are subjected to pay taxation when France is your main country of residence, or you spend more than 183 days in France in a calendar year. This can be a grey area. Alternatively you pay tax when your principal activity is in France, when your principal investments' are located in France, or when the largest part of your income is earned in France.

Taxation in France (in Euros):

  • Between 0 and 5,875: 0%

  • Between 5,875 - 11,720: 5.5%

  • Between 11,720 - 26,030: 14%

  • Between 26,030 - 69,783: 30%

  • Above 69,5783: 40%

What are the yearly tax forms to be submitted?

Declaration des revenues - Income Tax, which is to be submitted to your local tax office. Their address and deadline date for submission will be printed on the form.

Declaration Commune des Revenus des Professions Independantes - to calculate healthcare contributions. Again, their address and deadline date for submission will be printed on the form.

How does French income tax compare to UK tax?

Taxation in France is expensive and complex.

What is the French equivalent to VAT?

The French equivalent is TVA (taxe sur la valeur ajoutee). There are three rates:

  • 20% - Normal

  • 5.5% - 10%  - reduced rate e.g. charged by the water board, artisans renovating a house older than two years old

  • 2.1% - Super-reduced rate: very rare

What does HT/TTC mean?

If the price has HT (hors taxe) next to it, it indicates that the price does not include the TVA and the TTC (toutes taxe comprises) price does include the tax.

How much do I have to earn before I start charging TVA?

If your turnover is less than 27 000 Euros, you must write the following on each invoice explaining that you are exempt from charging TVA; "TVA non applicable, art.293B du CGI."

Does the VAT system work the same way in France?

Quarterly returns are submitted with the exception of the final quarter, which ends in November. Charging TVA is the same as the UK but claiming it back does differ as the items you can claim on are different e.g. you can claim back the TVA on diesel but not petrol.

What is Taxe Professionnelle - TP?

This is business licence tax that all business activities in France have to pay yearly. The tax paid is passed to your local commune.

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Organisations that can assist with Taxation

  • > Cross Border VAT Support Ltd

    Your One-Stop Shop for Cross Border VAT Compliance

    More Details Visit Website
  • > Maupard Fiduciaire

    Multilingual, experienced certified accountancy firm specialised in the growth management of individual entrepreneurs and international businesses entering the French market. Tax advice, bookkeeping, payroll, legal and audit services

    More Details Visit Website

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