Updated with 2025 information.

VAT is a consumption-based tax supported by the final consumer of a good or service. It is collected and reversed to the state by the vendor or service provider, who deducts from the amount collected the VAT paid to suppliers. This article explains the principle in detail. If you run your business as self-employed person in France (micro entrepreneur or entreprise individuelle), you start off as not registered for VAT (franchise en base de TVA). This means that you do not need to charge your customers VAT, or declare and pay VAT to the tax office. As a result, you cannot claim any VAT back on the purchases that you make for your business.

Once you cross certain annual turnover thresholds, you must register to get a VAT number, and start collecting the tax from your customers. You can then deduct the VAT that you have paid to French suppliers for your business related purchases, and need to pay the rest to the tax office. Let’s take a detailed look at your options and steps to follow.