Micro-entreprise
Does UK Client Income Count Towards the French VAT Franchise Threshold?
Not settled. The July 2026 commentary suggests services to a business outside the EU do not count; the 2023 version said they did. Which threshold is in doubt, and the one letter that settles it for you.
28 Oct 2026 · 4 min read · By Sophie Kazandjian
Nobody can give you a settled answer, and anyone who does is guessing. The tax administration's commentary changed in July 2026, the previous version said the opposite, and the underlying article of the tax code could not be read directly when this was checked. The prudent course is to count UK income against the VAT franchise threshold until your own tax office tells you in writing that you need not.
Two thresholds, one of them clear
Two ceilings matter to a micro-entrepreneur. The micro-entreprise turnover ceiling, €83,600 for services in 2026, counts all your receipts wherever the client is; UK income is in, without question. The VAT franchise threshold, €37,500 for services with a tolerance to €41,250 in the year of crossing, is the one in doubt.
Why it is in doubt
The commentary on the franchise (BOI-TVA-DECLA-40-10-10, version of 1 July 2026, paragraph 180) says the reference turnover is the turnover "realised in France, that is to say the turnover of operations whose place of taxation is in France". A business-to-business service supplied to a client established in the UK is taxed in the UK, not in France. On that wording it would not count. The 2023 version of the same commentary included such services. The practitioners I have asked are divided, and I have not found a case, a rescrit or a ministerial answer that settles it.
Why it is worth an hour
Crossing the franchise threshold means charging VAT from the day you cross it, issuing corrective invoices for anything after that date, and a VAT return thereafter. If your UK work alone is anywhere near €37,500, the question decides whether you are a VAT-registered business next year. So ask it, in writing, through the messaging service in your espace professionnel on impots.gouv.fr, quoting the July 2026 paragraph, and keep the reply. A written answer from your Service des impôts des entreprises binds them to it. A forum answer binds nobody.
Until the reply comes, count everything. It is the only reading under which you cannot be caught out, and if the answer turns out to be that UK income does not count, you have lost nothing but a margin you were not using.
The threshold itself may move
The government tried to cut the franchise to €25,000 in 2025 (suspended, then repealed in November 2025) and to bring the services threshold down for everyone in the 2026 budget (rejected by both chambers). The 2027 budget is due this autumn. The January 2027 issue of Micro Admin reports what it contains, which is one reason there is a year in the name.
Which line goes on the invoice meanwhile does not depend on the answer: under the franchise it is 293 B with 259-1, and registered it is 259-1 alone.
Questions
- Does UK income count towards the €83,600 micro-entreprise ceiling?
Yes. That ceiling counts all receipts wherever the client is. Only the VAT franchise threshold is in doubt.
- I am already VAT-registered. Does this affect me?
No. The question is whether a franchise business crosses into VAT. Once registered, your UK invoices carry the 259-1 line and no VAT, and the threshold no longer applies to you.
- Where do I ask my tax office?
Through the messaging service in your espace professionnel on impots.gouv.fr. Quote BOI-TVA-DECLA-40-10-10 paragraph 180 and ask whether services to a business established outside the EU count towards the franchise threshold. Keep the written reply.
The full guide · €19
Invoicing a UK client from France
Thirteen pages, with a bilingual model invoice in sterling to copy. Every figure sourced and dated.
Get the guide →Or all three guides with the URSSAF tracker and the deadlines calendar: Micro Admin 2026/27, €49.
Other questions
- Can a Micro-Entrepreneur in France Invoice a UK Client in Pounds and in English?
- Do I Have to Put EI After My Name as a Micro-Entrepreneur?
- The €40 Recovery Fee and the Late-Payment Line Every French Invoice Needs
- Do I Have to Declare My Wise Account in France? Form 3916 for Micro-Entrepreneurs
- Paid in Pounds: Which Exchange Rate Goes on the URSSAF Declaration?
- Invoicing a UK Client from France: Which VAT Line, and Why Autoliquidation Is Now Wrong
Everything answered so far, in one place. If your question is not there, email it to [email protected]; the ones that come up more than once get a page.