Freelance VAT Regimes: Franchise, Simplified Real, Normal Real
VAT frightens many freelancers, often wrongly. In reality, it all comes down to knowing which regime you are in, because each has its thresholds and obligations. In 2026, three regimes coexist. This guide helps you identify yours and understand what it concretely implies.
Regime 1: the VAT base franchise
This is the default regime for most micro-entrepreneurs starting out. Under the franchise, you charge no VAT to your clients and reclaim none on your purchases. Your invoices bear the note "VAT not applicable, article 293 B of the CGI".
You benefit from it as long as your revenue stays under the 2026 thresholds:
| Activity | Base threshold | Upper threshold |
|---|---|---|
| Services (BIC/BNC) | €37,500 | €41,250 |
| Sales and accommodation | €85,000 | €93,500 |
Recall that the single €25,000 threshold plan was abandoned (see the 2026 VAT threshold reform). The franchise therefore remains widely accessible.
Regime 2: the simplified real regime
Beyond the franchise thresholds, or by option, you enter a real VAT regime. The simplified real regime is designed to lighten obligations: you make only one annual declaration (form CA12) summarising the VAT collected and deductible for the year, with two half-yearly instalments (July and December).
It is the regime of many small businesses and companies with regular activity. It suits you as long as your VAT stays within reasonable limits and your activity does not generate frequent VAT credits to reclaim quickly.
Regime 3: the normal real regime
The normal real regime involves a monthly declaration (form CA3), or quarterly if your annual VAT is low. You declare and pay VAT at the actual pace of your activity.
This regime is mandatory beyond certain revenue thresholds, and becomes advantageous if you have recurring VAT credits (investments, large purchases): you reclaim them faster than under the simplified real regime, where you must wait for the annual declaration.
| Regime | Declaration | For whom |
|---|---|---|
| Base franchise | None (no VAT) | Beginners, small revenue |
| Simplified real | Annual (CA12) + 2 instalments | Regular activity, moderate VAT |
| Normal real | Monthly (CA3) | Large volumes, frequent VAT credits |
Should you voluntarily leave the franchise?
Yes, in some cases. Giving up the franchise to opt for a real regime can be wise when:
- You invest heavily (equipment, vehicle): you reclaim the VAT on these purchases.
- Your clients are VAT-registered businesses: the VAT you charge costs them nothing (they reclaim it), and you gain the deduction of your own VAT.
Conversely, if you sell to individuals, charging VAT raises your prices by 20% with no counterpart: the franchise is then preferable as long as possible.
The VAT rates to know
In France, the standard rate is 20%. Reduced rates apply to certain activities: 10% (catering, transport, some works), 5.5% (food products, books, energy), 2.1% (reimbursable medicines, press). A service provider generally applies the standard 20% rate.
Understanding your VAT regime means avoiding bad surprises and sometimes saving money. If you are approaching the franchise threshold, simulate the impact of moving to VAT on your activity, and for your clients outside France, see our guide invoicing a foreign client.