VAT: Annual CA12 return to end on 1 January 2027
VAT: Annual CA12 return to end on 1 January 2027
Does your company currently file its VAT return once a year using a CA12 return and, where applicable, pay instalments in July and December? This system is coming to an end.
As of 1 January 2027, the simplified VAT regime will be abolished and replaced by the standard VAT regime, pursuant to Article 38 of the Finance Act for 2025.
The key points in four steps
- End of the CA12 return: your VAT will be reported using a CA3 VAT return, filed quarterly or monthly, depending on your turnover.
- Automatic transition: the French tax authorities will automatically transfer you to the standard VAT regime. No action is required on your part.
- One final CA12 return in 2027: a final CA12 return must still be filed for your last accounting period under the simplified VAT regime.
- Action required: you must inform your certified e-invoicing platform of your new VAT regime for e-reporting, which will begin on 1 September 2027.
Does this apply to you?
- Yes, if your company is currently subject to the simplified VAT regime and files an annual CA12 or CA12E return, regardless of whether its financial year ends on 31 December or at another date during the year.
- No, if you are a farmer subject to the simplified agricultural VAT regime. Your VAT regime remains unchanged.
- If you are already subject to the monthly standard VAT regime: if your turnover for the previous year does not exceed €1 million, you may request to move to quarterly VAT returns as of 1 January 2027 by contacting your local tax office.
Will you file VAT returns quarterly or monthly?
| Your situation | CA3 filing frequency |
|---|---|
| Turnover, including taxable acquisitions, not exceeding €1,000,000 in the previous calendar year and €1,100,000 in the current year | Quarterly |
| Exceeding one of these thresholds | Monthly, automatically |
| You prefer to file monthly | Monthly, by election |
How is your initial filing frequency determined? The tax authorities will base their decision on the turnover reported in your most recent annual return. If no annual return has been filed, quarterly filing will apply automatically.
If the thresholds are exceeded during the year, you will switch to monthly filing. A first monthly return will be due for the month in which the threshold is exceeded and will include the transactions carried out since the beginning of the relevant calendar quarter.
To opt for monthly filing, you simply need to submit a request to your local tax office via the secure messaging service in your professional online account. The election will take effect from the first day of the calendar quarter following your request, or from a later quarter specified by you.
Your transition timetable
| Calendar year / financial year ending between January and June 2027 | Financial year ending between July and November 2027 | Calendar year ending 31 December 2026 | |
|---|---|---|---|
| Final annual return | CA12E for 2026/2027, within three months of the year-end | CA12E for 2026/2027, within three months of the year-end | CA12 for 2026, by 4 May 2027 |
| First CA3 return | For the first month or quarter following the year-end | For the first month or quarter following the year-end | For January 2027 or Q1 2027 |
| July 2027 instalment | Not due | Not due | Due if VAT for the previous financial year exceeds €1,000 |
| December 2027 instalment | Not due | Not due | Not due |
What about e-invoicing?
As of 1 September 2027, like all small and micro-enterprises, businesses previously subject to the simplified VAT regime will be required to transmit their transaction and payment data to the tax authorities through e-reporting.
The frequency of data transmission will depend on your VAT regime:
| VAT regime | Transaction data | Payment data |
|---|---|---|
| Quarterly standard VAT regime | Once a month | Once a month |
| Monthly standard VAT regime | Every 10 days | Once a month |
This is why the tax authorities require each company to inform its certified e-invoicing platform of its new VAT regime. This enables the platform to apply the appropriate transmission frequency.
What you need to do
- With the tax authorities: no action is required, as the transition is automatic.
- File your final CA12 or CA12E return within the applicable deadlines set out above.
- Inform your certified e-invoicing platform of your new VAT regime — quarterly or monthly.
- If you wish to file monthly: submit your election via the secure messaging service in your professional online account.=