Regulatory updates - France

The French tax administration has confirmed that the simplified VAT return regime will be abolished with effect from January 1, 2027, pursuant to Article 38 of the 2025 Finance Law. This measure ends a longstanding administrative simplification, as confirmed by guidance from the French tax authority. Businesses currently operating under this regime will transition to the standard VAT reporting framework, with filing frequency determined by turnover.

Scope of the current regime

Under the regime now being repealed, qualifying businesses were permitted to submit a single annual VAT return, supplemented by two interim installment payments during the fiscal year, provided their annual VAT liability remained below EUR 15,000 and other statutory conditions were satisfied.

Filing frequency under the standard regime

From 2027, affected taxpayers will file form CA3 monthly or quarterly. Quarterly filing applies where turnover, including taxable acquisitions, does not exceed EUR 1 million during the previous year or EUR 1.1 million during the current year. Businesses exceeding these thresholds must file monthly, and voluntary monthly filing may also be elected.

Administrative transition

The French Directorate General of Public Finances will reassign affected businesses automatically, based on turnover reported in the most recent annual return. In the absence of such a return, quarterly filing will be assigned by default. Calendar year taxpayers will submit their first CA3 return for either January 2027 or the first quarter of 2027, while the final annual CA12 return covering the period ending December 31, 2026, remains due by May 4, 2027. Businesses operating under a non-calendar fiscal year are subject to separate transitional timing.

Practical implications

The reform requires affected businesses to adapt internal processes to accommodate more frequent VAT calculation, reconciliation and payment cycles. The simplified VAT regime applicable to farmers remains unaffected by this change.

France has adopted Ordinance No. 2026‑671 of July 27, 2026, postponing the entry into force of the country's VAT recodification project. The reform, which transfers VAT provisions from the General Tax Code (CGI) into the new Goods and Services Tax Code (CIBS), was originally scheduled to take effect on September 1, 2026, but will now apply from January 1, 2027.

As a consequence of the postponement, taxpayers may continue to reference the existing VAT articles of the General Tax Code (CGI) on invoices instead of the corresponding provisions of the Goods and Services Tax Code (CIBS) for a longer period.

The deadline for using references to the former CGI articles on invoices has been extended from December 31, 2027, to June 30, 2028.

The postponement applies only to the VAT recodification project and does not affect France’s e‑invoicing and e‑reporting mandate, which entered into force on September 1, 2026.

On September 1, 2026, the French Minister of Public Action and Accounts issued a press release confirming that no penalties will be applied for e‑invoicing and e‑reporting non‑compliance during the remainder of 2026.

According to the Ministry, more than 66% of French companies have already joined the reform and selected an approved platform (PA). The government stated that its priority is to support businesses in adopting the new framework and completing their onboarding activities.

The press release also highlights cybersecurity as a key focus area for the French authorities. Approved platforms (PA) will be required to strengthen and demonstrate their cybersecurity capabilities through several measures, including:

• Submitting a cybersecurity progress report before the end of September 2026.
• Reporting cybersecurity incidents to the relevant authorities.
• Conducting penetration testing as part of enhanced security controls beginning in autumn 2026.