Regulatory updates - France

France has set new VAT exemption and simplified regime thresholds for 2026. For goods, on-site sales and accommodation, the limits are 85,000 and 93,500 euros. For other services, they are 37,500 and 41,250 euros.

The rule works in two steps. Crossing the standard threshold makes VAT due from the following January 1, as long as the business stays below the increased threshold. Crossing the increased threshold makes VAT due immediately.

Beyond the thresholds, a bigger legal shift is underway; VAT rules are being recodified. From September 1, 2026, VAT rules move from the CGI to a new code, the CIBS. Old CGI references can still be used, with a grace period until December 31, 2027.

The same date brings a separate change: France's e-invoicing mandate begins. From then on, all businesses must be able to receive electronic invoices, and larger companies must issue them too.

On July 10, 2026, France's Minister for Public Accounts convened the reform's "community of relays" at Bercy, and confirmed the official calendar and the tax administration's control approach. The same week, the DGFiP released its practical start-up guide, structured around three principles: the legal calendar is maintained, economic continuity is preserved, and this continuity is not a dispensation from applying the reform.

What's confirmed: All businesses in scope must be able to receive e-invoices from September 1, 2026. Large enterprises and mid-sized companies (ETI) must issue via an approved platform (PA) and comply with e-reporting from that date. SMEs and micro-enterprises follow on September 1, 2027.

What's new: Operational tolerance during start-up. Genuine invoices received by email, PDF, or paper won't be rejected solely for missing the electronic channel, provided they reflect a real transaction with the necessary information. VAT deduction rights aren't automatically lost either. Businesses not fully ready should activate working flows, document gaps, and organize regularization; not wait for full readiness before starting.

What's not changing: Sanctions under CGI articles 1737, 1788 D, and 1737 IV bis remain in force. The tolerance applies only to real, documented difficulties tied to an active compliance trajectory; not to inertia, avoidance, or refusal to enter the system. And the guide is explicit that this is neither a postponement nor a suspension of the obligation.

The guide covers six themes across 29 Q&As: receipt continuity, mandatory issuance, voluntary early adoption, e-reporting regularization, start-up incidents, and dialogue with the administration.

If you want the details, the guide is worth five minutes of your time; find it here:

• DGFiP, Guide pratique de démarrage: https://www.impots.gouv.fr/sites/default/files/media/1_metier/2_professionnel/EV/2_gestion/290_facturation_electronique/guide_pratique_facturation_electronique.pdf
• economie.gouv.fr, Tout savoir sur la facturation électronique: https://www.economie.gouv.fr/tout-savoir-sur-la-facturation-electronique-pour-les-entreprises

On June 30, 2026, AFNOR released version 1.4 of the three technical standards structuring the French e-invoicing reform. These are: the standard defining the semantic data model and syntax for all mandate formats, plus codelists and business rules; the standard specifying a recommended standardized API for communication between businesses and Accredited Platforms, aimed at simplifying solution portability; and the use-cases standard, cataloging commercial scenarios all platforms must support consistently.

The main addition is bidirectional self-billing: a single document combining self-billing and a sale to the same counterparty, expected notably in agriculture. The use-cases standard also completes rules for cross-sales and margin-scheme VAT, integrates the overseas consumption tax (octroi de mer), clarifies the "Refused" status, and adds developments for energy, media buying and real estate, including VAT-liable co-ownership associations. This raises the total to 45 use cases, up from 44 in version 1.3, published February 26, 2026, which had already added 2 cases and enriched cases 2, 13, 37, 38 and 41.

Whether this is the final scheduled update before go-live is not yet confirmed by AFNOR or DGFiP directly. According to statements reported from the May 5, 2026 plenary, the commission is expected to shift into maintenance mode after this release, with a next update anticipated in November 2026, followed by an annual rhythm. This has not been independently verified on an official AFNOR or impots.gouv.fr publication at time of writing, so treat it as reported guidance rather than confirmed fact.

Please find the full specifications and sources here:

• AFNOR, standard XP Z12-012 (formats, semantic model, lifecycle statuses)
• AFNOR, standard XP Z12-013 (API specification)
• AFNOR, standard XP Z12-014 (B2B use cases)