What is TVA and when is it applicable on a French invoice?

TVA (Taxe sur la Valeur Ajoutée) is France's Value Added Tax. It's generally applicable to most goods and services. Businesses become subject to TVA once their turnover exceeds certain thresholds. If you are below these thresholds (e.g., as a micro-entrepreneur), you must state 'TVA non applicable, article 293 B du CGI' on your invoices, rather than charging TVA.

What are the penalties for non-compliant invoices in France?

Non-compliant invoices in France can lead to significant penalties. Minor omissions or inaccuracies can result in a fine of €15 per missing or incorrect mention. More serious offenses, such as issuing fraudulent invoices or failing to issue one when legally required, can incur substantial fines up to €75,000 for individuals and even higher for companies, along with tax reassessments.

Do I need a French bank account to invoice French clients?

No, you do not strictly need a French bank account to invoice French clients. You can receive payments via international bank transfers (SEPA for EU/EEA), online payment platforms, or other agreed-upon methods. However, having a local bank account can sometimes simplify transactions for clients and reduce international transfer fees, making it a convenient option.

Can a micro-entrepreneur charge TVA on their invoices?

Generally, no. A micro-entrepreneur under the TVA exemption ('franchise en base de TVA') cannot charge TVA. They must explicitly state 'TVA non applicable, article 293 B du Code Général des Impôts' on all invoices. However, if their turnover surpasses certain thresholds, they will automatically become subject to TVA and must then apply it to their invoices.

French Invoice Requirements: What Every Facture Must Include

For freelancers and small businesses operating in France, understanding 'facture' requirements is essential. An invoice is a crucial legal document, vital for accounting and tax compliance. Meeting all France invoice requirements protects your business and professional reputation. Navigating these specifics can feel complex, but modern tools can simplify the process. For instance, VoicePrice, an app supporting 8 languages including French, allows you to simply speak your invoice details. It intelligently converts your speech into a structured invoice in under 30 seconds, ensuring you capture all necessary elements effortlessly.

Let's explore the essential components every French invoice must include to ensure compliance.

Core Seller and Client Information

Your invoice must clearly identify both parties involved in the transaction:

Your Details (Seller): Full legal name/company name (Dénomination sociale), full address (Siège social), SIREN/SIRET number. If applicable: RCS registration (city), legal form, share capital, and your intra-community VAT (TVA) identification number.
Client Details (Buyer): Full legal name/company name, full address. If a professional client, their intra-community VAT (TVA) identification number.

Invoice Identification and Dates

Every invoice needs unique identifiers and clear timestamps:

Invoice Number: A unique, sequential number from an uninterrupted chronological sequence.
Invoice Date: The date the invoice was issued.
Date of Service/Delivery: If different from the invoice date, clearly state when goods were delivered or service rendered.

Description of Goods and Services

This section details what was sold or provided:

Precise Description: Clearly state the nature, quantity, and unit price (before tax) for each good or service.
Discounts/Rebates: Any commercial discounts or rebates must be itemised.

VAT (TVA) Details

One of the most critical aspects of France invoice requirements is TVA (Taxe sur la Valeur Ajoutée). This section must include:

TVA Rate: The applicable TVA rate for each item (e.g., 20%, 10%).
TVA Amount: The total TVA amount calculated per rate.
Total Amount Excluding Tax (HT): The sum of all items before TVA.
Total Amount Including Tax (TTC): The final amount due, including all TVA.
TVA Exemption Mention: If you are exempt from TVA (e.g., as a micro-entrepreneur), you must explicitly state: "TVA non applicable, article 293 B du Code Général des Impôts" (CGI).

Payment Terms and Penalties

Clear payment terms prevent misunderstandings:

Payment Due Date: Clearly state the deadline for payment.
Late Payment Penalties: Specify the rate of late payment penalties (typically 3 times the legal interest rate) and the lump sum indemnity for recovery costs (€40 for professional transactions).
Discount for Early Payment: If offered, clearly state the terms.

Additional Legal Mentions

Depending on your business structure or profession, extra details may be required:

Professional Liability Insurance: If your activity requires it, mention the insurer's name, contact details, and geographical coverage.
Micro-Entrepreneur Specifics: Besides the TVA exemption, you may need to state "Membre d'une association agréée, le règlement par chèque est accepté" if part of an approved management association.

Streamlining Your French Invoicing Process

While the specifics can seem extensive, remembering these key points and utilising reliable tools will keep you compliant. Regularly checking for updates to French tax law is also a smart move, as regulations can change. Whether you're a plumber, consultant, or designer, generating a quote or an invoice should be straightforward. VoicePrice, available on iOS for iPhone and iPad (iOS 17+), makes it easy to create, preview, and send professional PDF invoices and quotes directly from your device, ensuring all your details are captured accurately and privately, as your data stays on your device. Its 8-language support, including French, means you can communicate effectively with a diverse clientele.

By ensuring your invoices are meticulously crafted and compliant with all France invoice requirements, you not only safeguard your business but also project a professional image to your clients. Bonne facturation! (Happy Invoicing!)

French Invoice Requirements: What Every Facture Must Include