VAT regimes — standard actual vs simplified

CA3 or CA12:
which regime for your business?

The simplified VAT filing regime is abolished with effect from 1 January 2027 (2025 Finance Act, art. 38, which repeals Article 302 septies A of the French Tax Code as from that date). Until then, the choice between the CA3 (standard actual regime, monthly or quarterly VAT return, Article 287 of the French Tax Code) and the CA12 (simplified regime, annual VAT return with instalments) depends on your turnover and on the amount of VAT chargeable. Thresholds recorded for the year 2026: turnover of EUR 945,000 or less (sales, catering, provision of accommodation) or EUR 286,000 or less (other activities), thresholds set in base value by Articles L. 162-4 and L. 162-5 of the Code of taxes on goods and services and updated by the Order of 27 January 2026; filing reverts to monthly as soon as the VAT chargeable in the previous year exceeds EUR 15,000 (French Tax Code, art. 287, 3 bis).

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— In brief
CA3 (standard actual)
Monthly (or quarterly if VAT < EUR 4,000/year), Article 287 of the French Tax Code
CA12 (simplified)
Annual return + 2 instalments (July/December), Code of taxes on goods and services, art. L. 162-1 et seq.
End of the regime
The simplified VAT regime is abolished on 1 January 2027 (2025 Finance Act, art. 38)
RSI thresholds 2026
Turnover ≤ EUR 945,000 (sales/accommodation) / EUR 286,000 (other activities); VAT chargeable in year N-1 ≤ EUR 15,000 (French Tax Code, art. 287, 3 bis)
Forms
3310-CA3 (monthly/quarterly) / 3517-S-CA12 (annual) / 3514 (instalments)
Threshold source
Order of 27 January 2026 (JORF No. 0023, JORFTEXT000053407616)
— 01

The right choice depends on both turnover and VAT volatility

The simplified regime (CA12) is attractive for its apparent simplicity: one annual VAT return and two instalments computed on the previous year's VAT. That simplicity has a cost: the instalments do not track the actual cash position of the current year. A growing business pays instalments that are too low (followed by a high balance on the CA12); a declining business pays instalments that are too high (with an overpayment to recover).

The standard actual regime (CA3) imposes a more demanding rhythm: a monthly VAT return (or quarterly if annual VAT is below EUR 4,000), with an exact real-time computation. It is heavier administratively, but cash flow follows the activity. For businesses with a recurring VAT credit (high input VAT, exports), the monthly CA3 speeds up refunds.

Our view: the CA12 suits very small, stable businesses; the monthly CA3 suits any structured business with an in-house accounting function or a regular accountant. The 2026 RSI threshold (EUR 945,000 for sales/accommodation, EUR 286,000 for other services) is broad, but the election for the standard actual regime, open to any eligible business, commits you over time: it takes effect until the end of the second calendar year following the year in which it takes effect, and then renews tacitly for periods of two calendar years (Code of taxes on goods and services, art. D. 162-10 to D. 162-12).

— 03

Two practical trade-off cases

E-commerce shop at EUR 280k: anticipated switch to the CA3

An online retailer with annual turnover of EUR 280,000, under the RSI for 3 years. Sustained growth: EUR 320,000 forecast for N+1. Because the activity is a supply of tangible goods, it falls under the EUR 945,000 threshold and not the EUR 286,000 threshold reserved for other activities (Code of taxes on goods and services, art. L. 162-4, 1° and 2°, and art. A. 162-7): the simplified regime therefore remains available despite the growth. The trade-off lies elsewhere — in the amount of VAT chargeable, which imposes monthly filing above EUR 15,000 (French Tax Code, art. 287, 3 bis), and in the recurring input VAT credit. Strategy: elect for the mini-réel from 1 January N+1 to move voluntarily to the monthly CA3 and accelerate the refund of input VAT on inventory purchases. Cash gain: around EUR 18k over the year (input VAT offset month by month instead of being spread).

Consulting firm at EUR 220k: an imposed exit from the simplified regime

A firm of 3 consultants, stable annual turnover of EUR 220,000, annual VAT of around EUR 28,000. Above the RSI VAT threshold (EUR 15,000), so the switch to the standard actual regime is automatic and mandatory. Filing is then monthly (French Tax Code, art. 287, 3 bis): the option of filing by calendar quarter presupposes annual chargeable tax below EUR 4,000 (French Tax Code, art. 287, 2) and is not available here. Strategy: organise the switch upstream — a monthly accounting production timetable, a cash-flow provision, a review of the right to deduct — rather than being caught out mid-year.

— 02

Point-by-point comparison

Eligibility thresholds

RSI / CA12: previous-year turnover of EUR 945,000 or less (sales, catering, provision of accommodation) or EUR 286,000 or less (other activities), and VAT chargeable in the previous year of EUR 15,000 or less. Standard actual / CA3: above those thresholds, or by election. Legal basis: Code of taxes on goods and services, art. L. 162-4 and L. 162-5 (thresholds in 2020-2022 values, updated every three years) and French Tax Code, art. 287, 3 bis; the amounts were recorded by the Order of 27 January 2026 for the year 2026 alone, the last year in which the regime applies.

Frequency and timetable

CA3: monthly (filing deadline between the 15th and the 24th of the following month, depending on the local tax office); quarterly if annual VAT is below EUR 4,000. CA12: annual (due on the 2nd business day of May of year N+1), plus 2 instalments on 15 July (55%) and 15 December (40%).

Cash flow and right to deduct

CA3: input VAT is offset month by month; a VAT credit can be claimed for refund every month (EUR 760 or more monthly, or EUR 150 annually). CA12: input VAT is spread over the year; refunds are only available at year end on the CA12. For a business with a recurring VAT credit, the CA3 is clearly more favourable in cash terms.

Automatic exit from the RSI

Two distinct mechanisms, often confused. If the VAT chargeable in the previous year exceeds EUR 15,000, the return becomes monthly even though turnover remains below the thresholds (French Tax Code, art. 287, 3 bis). If turnover crosses the increased thresholds during the financial year (EUR 1,040,000 for sales, catering and accommodation; EUR 323,000 for other activities), the condition laid down by Article L. 162-5 of the Code of taxes on goods and services is no longer met and the regime ceases to apply without waiting for the following year. In both cases the transition must be prepared upstream: it has an immediate cash-flow effect.

Mini-réel: electing for the CA3 below the RSI threshold

A business eligible for the RSI can elect for the standard actual regime and file monthly CA3 returns (Code of taxes on goods and services, art. D. 162-10 to D. 162-12). The election takes effect until the end of the second calendar year following the year in which it takes effect — taking effect on 1 January of year N, it runs until 31 December of year N+2 — and then renews tacitly for periods of two calendar years. Useful where there is a recurring VAT credit, or to align VAT reporting with other accounting obligations. Exit is not unrestricted: it requires a refusal to renew sent to the managing tax office no later than 31 January of the year preceding the renewal (art. D. 162-12).

Common penalties

Identical for the CA3 and the CA12 (Articles 1727, 1728 and 1729 of the French Tax Code): late-payment interest of 0.20% per month, a 10% surcharge for failure to file, rising to 40% after formal notice and 80% in the event of a concealed activity or fraudulent conduct. Spontaneous regularisation before any audit limits the penalty to late-payment interest alone.

— Interactive table

Compare the VAT regimes in one click

Filter by regime: thresholds recorded for 2026 (Order of 27 January 2026), forms, filing frequency, penalties. Identical to the simulator on the /declaration-tva/ hub.

Sources: Articles 287 (CA3), 302 septies A (RSI/CA12), 293 B (base exemption) and 1727-1729 (penalties) of the French Tax Code, plus the Order of 27 January 2026 (JORF).

— Frequently asked questions

CA3 or CA12: which one must I file?

The choice is made by elimination, based on two criteria. (1) Type of activity and turnover: if your turnover remains below EUR 945,000 (sales, catering, provision of accommodation) or EUR 286,000 (other services), you are eligible for the simplified regime and file the annual CA12. Above those thresholds, the monthly CA3 (or quarterly if VAT is below EUR 4,000/year) applies. (2) Annual VAT ceiling: even below the turnover thresholds, once your annual VAT exceeds EUR 15,000, you automatically switch to the CA3. In practice: the CA12 for very small, stable businesses with no recurring VAT credit; the CA3 for any organised structure, all the more so where a regular VAT credit arises (the mini-réel election allows you to stay on the CA3 below the RSI threshold — Code of taxes on goods and services, art. D. 162-10 to D. 162-12).

How do you move from the RSI to the standard actual regime?

Two routes. (1) An automatic switch, under two distinct mechanisms. If turnover for the current year crosses the increased thresholds — EUR 1,040,000 (sales, catering, accommodation) or EUR 323,000 (other activities) — the simplified regime ceases to produce its effects on 1 January of that same year (Code of taxes on goods and services, art. D. 162-8, 2°): the exit is retroactive, it does not wait for the following year. If the VAT chargeable in the previous year exceeds EUR 15,000, the return becomes monthly (French Tax Code, art. 287, 3 bis). (2) The mini-réel election (Code of taxes on goods and services, art. D. 162-10 to D. 162-12): a voluntary election for the standard actual regime, notified by registered letter with acknowledgement of receipt to the business tax office. It takes effect until the end of the second calendar year following the year in which it takes effect, and then renews tacitly for periods of two calendar years (art. D. 162-12). It takes effect on 1 January of the current year where it is made before the filing deadline for the last accounting period opened, and on 1 January of the following year otherwise.

Are the 2026 thresholds annual or multi-year?

The Order of 27 January 2026 (JORF No. 0023) sets the RSI thresholds for the year 2026 alone, and not for a three-year period: Article A. 162-7 of the CIBS states the amounts applicable "for the year 2026" and itself ceases to produce effect on 1 January 2027. Since the creation of the Code des impositions sur les biens et services (CIBS), these thresholds are revalued in line with inflation under Article L.162-4 of the CIBS, rounded to the nearest thousand euros. Note: the abolition of the simplified regime is settled — it follows from Article 38 of the 2025 Finance Act and takes effect on 1 January 2027.

What is the exact timetable for the RSI instalments?

Two half-yearly instalments (French Tax Code, art. 287, 3): 15 July (55% of the reference VAT, being the VAT due for the previous year) and 15 December (40%). The balance is settled on the CA12, filed no later than the 2nd business day of May of year N+1. If the reference VAT is below EUR 1,000, no instalments are due.

Can you elect for the monthly CA3 even below the RSI threshold?

Yes. This is the mini-réel election (Code of taxes on goods and services, art. D. 162-10 to D. 162-12). It is useful for businesses with a recurring VAT credit (exports, large purchases), to align VAT with other obligations (DEB, DES), or to obtain a more accurate cash position. The commitment runs until the end of the second calendar year following the year in which the election takes effect, and then renews tacitly for periods of two calendar years. Bringing it to an end requires a refusal to renew, sent to the managing tax office no later than 31 January of the year preceding the renewal (art. D. 162-12): the deadline has to be prepared almost a year ahead.

How does this differ from the base exemption?

The base exemption (Article 293 B of the French Tax Code) is a separate regime, below the RSI thresholds: year N-1 of EUR 85,000 or less (total turnover) / EUR 37,500 or less (services), and current year of EUR 93,500 or less / EUR 41,250 or less. Under the exemption, no VAT is charged and there is no right to deduct. Above those thresholds, the business moves to the RSI or the standard actual regime depending on turnover. The exemption requires neither a CA3 nor a CA12.

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