Freelancer Tax in France: Auto-Entrepreneur, TVA & URSSAF (2026)

France's auto-entrepreneur (officially micro-entrepreneur since 2016) is a simplified regime for solo freelancers:

• Easy online registration via autoentrepreneur.urssaf.fr
• Simplified accounting — no balance sheet, just income tracking
• Pay URSSAF social contributions as a % of gross revenue
• Optional versement libératoire — pay income tax as a small % of revenue
• Stop or pause activity at any time

Thresholds (2024-2026 cycle):

• €77,700/year — service activities (most freelancers: BNC = professional, BIC = commercial services)
• €188,700/year — sales of goods (BIC)

Exceed the threshold for two consecutive years and you're forced into the standard regime.

Auto-entrepreneurs benefit from franchise en base de TVA — no obligation to charge TVA on invoices — if turnover stays under:

• €37,500 (services)
• €85,000 (sales of goods)

Exceed these and you must register for TVA and start charging it.

When TVA-exempt: include the mandatory mention on invoices: "TVA non applicable, art. 293 B du CGI"

TVA rates (when applicable):

• 20% Standard — most services and goods
• 10% Reduced — restaurants, transport, renovation
• 5.5% Super-reduced — food, books, cultural events
• 2.1% Special — press, certain medicines

Many auto-entrepreneurs deliberately stay under the franchise threshold to keep invoicing simple. Note: the threshold is being reformed — €25,000 single threshold proposal under discussion for 2025+.

Auto-entrepreneurs pay URSSAF a percentage of gross revenue (not profit):

• BNC (professional services) — 21.2% as of 2026
• BIC services (commercial services) — 21.2%
• BIC sales — 12.3%
• Liberal professions (CIPAV) — 24.6%

These contributions cover:

• Health insurance (sécurité sociale)
• Retirement (basic + complementary)
• Family benefits
• Training (CFP)
• Disability and death

Declare and pay monthly or quarterly via autoentrepreneur.urssaf.fr — choose your frequency at registration.

Option 1: Standard income tax (impôt sur le revenu)

• Add your micro-entrepreneur income (after abatement of 34% for BNC, 50% for BIC services, 71% for BIC sales) to household income
• Pay income tax per usual progressive brackets (0% / 11% / 30% / 41% / 45%)
• Pay social contributions to URSSAF separately

Option 2: Versement Libératoire (Liberating Payment)

• Pay a small flat % of revenue alongside URSSAF contributions, in lieu of regular income tax
• Rates: 1% (sales), 1.7% (BIC services), 2.2% (BNC)
• Only available if your household income (RFR) is below ~€26,000 (single) the previous year
• Choose at registration or annual renewal

Versement libératoire is attractive for low-income freelancers in higher tax brackets — saves significant income tax.

French invoices must include:

• Word "Facture" clearly displayed
• Sequential invoice number
• Issue date
• Your name + SIRET / SIREN number
• Address (yours and client's)
• Client name + SIRET (if B2B)
• Description of services/goods
• Quantity, unit price, total per line
• Subtotal HT (excl. tax)
• TVA rate and amount (or "TVA non applicable, art. 293 B du CGI" if franchise)
• Total TTC (incl. tax)
• Payment terms and late penalty rate (mandatory mention)
• Date of execution / service period

Mandatory legal mentions:

• If under TVA franchise: "TVA non applicable, art. 293 B du CGI"
• Late payment penalties: "Pénalités de retard exigibles le jour suivant la date de règlement figurant sur la facture, au taux légal en vigueur"
• Compensation for collection costs: "Indemnité forfaitaire pour frais de recouvrement de 40 €" (B2B only)

URSSAF declarations (auto-entrepreneur):

• Monthly or quarterly — your choice at registration
• Declare gross revenue and pay percentages — done online
• Even ZERO revenue periods must be declared

Annual income tax (Déclaration de revenus 2042-C-PRO):

• File between April and June each year (deadline varies by département, generally early June)
• Declare your auto-entrepreneur revenue under appropriate BNC/BIC category

Cotisation Foncière des Entreprises (CFE):

• Annual business tax based on rental value of business premises
• Exempt in first year of activity
• Due by December 15 each year

Late URSSAF declaration: 5 of your monthly/quarterly turnover allowance for the period, accumulating until declared.