France Abolishes the Simplified VAT Regime (RSI) from 1 January 2027

From 1 January 2027, France will abolish its simplified VAT regime (régime simplifié d'imposition, RSI). Businesses currently under this regime will move to the normal VAT regime (régime réel normal) and file periodic VAT returns. The French tax administration (DGFiP) has published a notice setting out the details of the transition.

What is the simplified VAT regime in France?

The RSI reduces VAT filing and payment obligations. It applies to businesses with an annual turnover, excluding VAT, of between €85,000 and €840,000 for sales of goods, catering and accommodation, or between €37,500 and €254,000 for services, provided that the VAT due for the previous financial year does not exceed €15,000. These businesses make two advance payments based on the previous year's VAT (55% in July and 40% in December) and file an annual adjustment return.

Find our French VAT manual here.‍

What changes with the abolition of the simplified VAT regime?

From 1 January 2027, the abolition of the RSI brings the following changes:

• End of the annual return and advance payments. The CA12/CA12E annual return and the July and December advance payments will disappear. Businesses will file VAT returns using form 3310-CA3.

• Quarterly filing by default. VAT returns will be filed quarterly where turnover, including taxable acquisitions, does not exceed €1,000,000 in the previous calendar year or €1,100,000 in the current year.  

• These businesses may opt for monthly filing by request to their tax office.

• If either threshold is exceeded, the business will automatically switch to monthly filing from the month in which the threshold is exceeded.

• Businesses that already file monthly and meet the threshold on 1 January 2027 may also request a switch to quarterly filing.

The simplified agricultural regime (RSA) is not affected.

How will the transition to the normal VAT regime work?

The DGFiP will switch businesses to the new regime automatically, with no action required. The filing frequency will be assigned based on the turnover reported in the last annual return filed; if no return is available, quarterly filing will apply.

For businesses whose financial year matches the calendar year, the first CA3 return will cover January or the first quarter of 2027. For other businesses, it will cover the first month or quarter after the close of the 2026/2027 financial year.

A final annual return (form 3517-S) will still be required:

• financial years ending on 31 December 2026: by 4 May 2027;

• financial years ending between January and November 2027: within three months of the year-end.

As for 2027 advance payments, no December payment will be due in any case. The July payment will only be due from businesses whose financial year ends between July and November 2027, and only if their VAT due for the previous year exceeds €1,000.

What does the change mean for e-reporting in France?

From 1 September 2027, SMEs and micro-enterprises, including those currently under the RSI, will have to transmit transaction and payment data as part of France's e-invoicing reform. The reporting frequency depends on the business's VAT regime:

• quarterly filers: transaction and payment data once a month;

• monthly filers: transaction data every ten days and payment data once a month.

Businesses concerned should therefore inform their approved platform (plateforme agréée) of their new VAT regime, so that the correct reporting frequency is applied.