France: Finance Bill for 2026 including adjustments to VAT base-franchise thresholds was introduced to National Assembly

On 14 October 2025, the Government introduced the Finance Bill for 2026 (No. 1906) to the National Assembly with measures to modify the VAT base-franchise regime. Article 25 proposes raising the general annual turnover threshold to EUR 37’500 while maintaining a specific threshold of EUR 25’000 for building works, following the simplification adopted in the Finance Act for 2025. It also preserves, for the period from 1 March 2025 to 31 December 2025, the ability for undertakings to rely on the thresholds in force on 1 January 2025. An adjustment is included concerning withholding at source of VAT on certain authors’ royalties so that amounts subject to withholding are excluded when determining franchise thresholds.