French VAT Changes in 2027: What UK Businesses Need to Know

French VAT rules are changing, and UK businesses with French VAT obligations should review their compliance arrangements ahead of 2027. Two important developments are France’s electronic invoicing and digital reporting reform, which began in September 2026, and the abolition of the simplified VAT regime from 1 January 2027.

These changes may affect VAT reporting, accounting processes and the information businesses must submit to the French tax authorities. Understanding which requirements apply to your business can help you prepare for the transition.

1. France’s Electronic Invoicing Reform

France began implementing its electronic invoicing reform on 1 September 2026. The reform introduces phased requirements for electronic invoicing and the digital reporting of certain transactions.

Under the published timetable:

• From 1 September 2026: All businesses within the French reform’s scope must be able to receive electronic invoices. Large businesses and intermediate-sized businesses established in France must also issue electronic invoices for relevant transactions and comply with applicable digital reporting requirements.
• From 1 September 2027: SMEs and micro-businesses established in France must begin issuing electronic invoices for relevant transactions and comply with the applicable reporting requirements.

The reform has two important reporting elements:

• E-invoicing: Electronic invoices for relevant transactions between businesses established in France and liable for VAT.
• E-reporting: Digital transmission of information about certain transactions that are not covered by the domestic e-invoicing requirement. This can include relevant sales to private individuals and transactions involving overseas businesses.

Electronic invoices must meet the prescribed technical requirements and be transmitted through an approved platform. An ordinary PDF sent by email will not, by itself, satisfy the mandatory e-invoicing requirements where they apply.

What does this mean for UK businesses?

UK businesses should not assume that having a French VAT registration automatically brings them within every part of the domestic e-invoicing regime.

The French tax authority confirms that foreign businesses without a fixed establishment in France for VAT purposes are generally outside the domestic e-invoicing obligation. However, they may have e-reporting obligations for certain transactions treated as taking place in France for which they are liable for French VAT.

The applicable requirements depend on the business’s establishment, the nature of its transactions and its VAT responsibilities.

For further information, consult the official guidance:

• French tax authority: Understanding electronic invoicing
• French tax authority: E-reporting for foreign businesses without a fixed establishment in France
• French Ministry of Economy: Electronic invoicing reform

2. The Simplified French VAT Regime Ends on 1 January 2027

France’s simplified VAT regime (régime simplifié d’imposition) is due to be abolished from 1 January 2027. The change follows Article 38 of the French Finance Act for 2025.

Businesses currently using the simplified VAT regime will move to the standard VAT regime and submit CA3 VAT returns. The French tax authority has confirmed that the changeover will generally take place automatically, using information from the latest annual VAT return.

Will businesses submit monthly or quarterly VAT returns?

The reporting frequency will depend on the applicable thresholds.

Under the published rules, quarterly CA3 returns generally apply where turnover plus taxable acquisitions does not exceed:

• €1 million during the previous calendar year; and
• €1.1 million during the current calendar year.

Businesses exceeding the applicable thresholds will move to monthly reporting. Businesses should check the detailed rules and their individual circumstances before relying on these thresholds.

For businesses whose accounting year follows the calendar year, the first CA3 return will cover January 2027 or the first quarter of 2027, depending on the reporting frequency that applies.

A final annual return under the simplified regime will also be required within the applicable deadline. For businesses whose accounting year ends on 31 December 2026, the French tax authority specifies a deadline of 4 May 2027.

What should businesses do?

Although the transition is generally automatic, businesses should review their reporting arrangements and ensure that their accounting systems are ready for the new requirements.

They should also inform their approved electronic invoicing platform of their new VAT regime. This is important because the VAT regime determines the applicable frequency for transmitting certain e-reporting data.

Read the official announcement: The simplified French VAT regime is abolished from 1 January 2027.

3. What Should UK Businesses Do Now?

UK businesses with French VAT obligations should review their position before the changes take effect.

We recommend taking the following steps:

• Review your French VAT arrangements. Confirm which French VAT regime applies to your business and whether your reporting obligations will change in 2027.
• Check your e-reporting obligations. If your business is established outside France, determine whether particular transactions require digital reporting to the French tax authorities.
• Review your VAT return frequency. Businesses moving from the simplified regime should establish whether monthly or quarterly CA3 returns will apply.
• Check your accounting software. Ensure your systems can produce the information required for French VAT returns and any applicable digital reporting.
• Update your approved platform details. If your VAT regime changes, make sure your platform has the correct information.
• Seek specialist advice where necessary. Cross-border transactions can have different reporting requirements depending on the nature of the transaction and the parties involved.

If you need help reviewing your French VAT registration or reporting obligations, our French VAT services can help you understand the requirements and manage your ongoing compliance.

4. How Can We Help With French VAT?

Managing VAT obligations in another country can be challenging, particularly when reporting requirements and digital processes are changing.

We support businesses with French VAT compliance, including registration, VAT returns and practical guidance on their ongoing obligations.

If your business is registered for French VAT, sells goods in France or carries out cross-border transactions involving France, we can help you review your responsibilities and identify the steps needed to maintain compliance.

Explore our French VAT registration and returns services or VAT returns services to find out more.

Contact us to discuss your French VAT requirements and prepare for the changes ahead.

This article provides general information and is not a substitute for advice based on your business’s circumstances. French VAT and electronic reporting requirements should be checked against the latest official guidance.