France VAT and TOMS Guide for Travel Businesses | French Tax Rules Explained

Complete overview of French VAT, travel rates, TOMS margin rules, and compliance requirements for inbound and outbound operators.

Detailed VAT and TOMS guide for travel agents, tour operators, and DMCs working in France. Understand VAT rates, place of supply, accommodation rules, event services, and margin calculations. Includes TOMS treatment, compliance obligations, and VAT reclaim guidance.

France – VAT and TOMS for Travel Businesses

Modern VAT system introduced: 1954 (Taxe sur la Valeur Ajoutée, TVA)
Standard VAT rate: 20 percent
Reduced rates: 10 percent, 5.5 percent, and 2.1 percent
Authority: Direction Générale des Finances Publiques (DGFiP)

France operates one of the most detailed VAT frameworks in Europe, with strict invoicing requirements, multiple reduced rates, and complex classifications for travel, food, cultural services, and events. France applies the EU Tour Operator Margin Scheme (TOMS) and is in the process of implementing mandatory B2B e-invoicing and e-reporting obligations.

Travel agents, tour operators, DMCs, and event organisers must understand French VAT, especially because France enforces documentation quality, place of supply accuracy, and classification rules more aggressively than many other EU jurisdictions.

VAT treatment of travel and hospitality in France

France applies several VAT rates to the tourism sector. Correct identification of the underlying supply is essential, as DGFiP auditors regularly challenge misclassified travel services.

Accommodation

Hotel accommodation and similar lodging are taxed at the 10 percent VAT rate.
This includes:

• room stays
• holiday villages and aparthotels
• campsites and caravan sites
• breakfast and half-board options when sold with accommodation

If meals, spa treatments, or wellness services are billed separately, they may fall under 20 percent depending on their nature.

Food and beverage

France distinguishes carefully between:

• 10 percent VAT on restaurant and catering services (food consumed on premises)
• 5.5 percent VAT for certain basic food products
• 20 percent VAT on alcoholic beverages

Many hotels incorrectly apply 10 percent to alcohol, which is a common adjustment in VAT audits.

Passenger transport

Domestic passenger transport is typically taxed at 10 percent, except for certain public transport categories that qualify for reduced rates under specific French rules.
International transport may be exempt or outside the scope.

Tours, guides, museums, and cultural activities

France uses a mix of 10 percent and 20 percent depending on the cultural nature of the service.

• guided tours: 20 percent
• museums and historical monuments: 10 percent
• amusement parks: 10 percent
• concerts, theatre, classical events: 5.5 percent
• event management and incentive activities: 20 percent

Determining which rate applies depends heavily on the legal nature of the organisation providing the service and the classification of the venue.

DMC and event organiser services

French DMCs typically charge 20 percent VAT for itinerary design, event planning, programme coordination, and MICE services.
Bought-in travel components may fall under TOMS if supplied as principal.

Place of supply rules

France follows EU rules to determine when a foreign supplier must charge French VAT. Key principles for travel businesses:

Accommodation is taxed where the property is located. Booking or reselling French hotels triggers French VAT at the underlying rate.

Event services performed in France are taxable in France regardless of customer location. This includes conferences, exhibitions, and incentive programmes.

Cultural, entertainment, and educational services are taxed where physically performed.

Restaurant and catering services are taxed where the service takes place.

Foreign travel companies must understand that selling travel consumed in France nearly always creates a French VAT exposure unless TOMS applies.

France and the Tour Operator Margin Scheme (TOMS)

France applies TOMS for travel agents and tour operators acting as principal when they buy in and resell travel services within the EU.

When TOMS applies

TOMS applies when:

• the operator buys in travel components (hotels, transport, excursions)
• the operator resells these in their own name
• the travel is consumed within the EU
• the service is supplied as a package or as a single bought-in component
• the operator acts as principal, not intermediary

What is taxed

Only the margin is taxed.
Input VAT on bought-in components used within TOMS is not recoverable.

Exclusions from TOMS

TOMS does not apply to:

• intermediary services (commission-based)
• planning or consulting where no bought-in components exist
• event management fees
• services where travel takes place outside the EU (margin may be zero rated)
• itemised services where French VAT applies directly

VAT rate under TOMS

The margin is always taxed at the standard 20 percent VAT rate, even if the underlying components are taxed at 10 percent or 5.5 percent.

Zero rating for non-EU travel

Travel outside the EU may qualify for a zero-rated margin if the entire itinerary occurs outside the EU. Mixed itineraries require allocation.

French invoicing requirements (factures)

France requires invoices to be compliant with strict formalities. Required elements include:

• supplier SIREN or SIRET number
• customer VAT number for B2B intra-EU supplies
• VAT rate and amount
• clear description of services
• date of supply and date of issue
• reference to the special scheme where applicable (TOMS)
• identification of the place of supply
• sequential invoice numbering

Improper invoices can invalidate VAT recovery for customers and may trigger fines.

Invoices under TOMS

When TOMS applies:

• no VAT is shown on the invoice
• the invoice must not imply that VAT can be recovered
• reference should be made to the EU margin scheme to avoid customer disputes

Mandatory e-invoicing and e-reporting (France 2026 reform)

France is implementing a mandatory B2B e-invoicing regime, phased between 2026 and 2027, covering:

• receipt of e-invoices by all VAT-registered businesses
• issuance of structured e-invoices for domestic B2B transactions
• e-reporting for cross-border supplies and B2C sales

The system will use certified platforms (PDPs) and the national Chorus Pro portal.

Who must comply

All businesses with a French VAT registration, including foreign companies with a fixed establishment in France.

Foreign companies without a fixed establishment register for VAT through a tax representative and must still comply with the e-reporting component where required.

Travel industry implications

• TOMS invoices will not show VAT but may still require e-reporting
• non-TOMS services must be e-invoiced where B2B
• foreign DMCs with a French VAT number must follow structured invoice formats
• French suppliers (hotels, venues, attractions) will issue e-invoices to travel companies using Chorus Pro or a certified provider

France will be one of the strictest e-invoice jurisdictions in the EU once fully implemented.

VAT registration rules for foreign suppliers

A foreign travel company may need to register for French VAT if it:

• sells event services in France
• resells French hotel rooms as principal
• provides restaurant or catering services in France
• supplies cultural or entertainment services taking place in France
• engages staff or has facilities in France (fixed establishment)
• sells any service outside TOMS requiring French VAT

Reverse charge may apply for some B2B services, but event-related services and accommodation are never reverse charged.

Foreign companies with no establishment must appoint a French tax representative if they are not established in the EU.

VAT reclaim position

VAT incurred in France may be refundable via:

• EU 8th Directive for EU businesses
• EU 13th Directive for non-EU businesses

However, VAT on costs linked to TOMS supplies remains non-recoverable.

Refund eligibility requires:

• compliant French invoices
• correct supplier SIRET/SIREN numbers
• evidence that the costs relate to taxable business activity
• submission through the correct electronic portal

Full details are available on our VAT Reclaim page.

Antravia helps

Antravia supports travel companies with:

• France VAT classification
• application of French TOMS rules
• margin calculations and allocations
• event VAT analysis
• review of invoices for compliance and reclaim eligibility
• guidance on 2026 e-invoicing requirements
• VAT registration and tax representative considerations
• mitigation of VAT leakage in multi-country itineraries

Not based in France but looking for French VAT Reclaim? Click here

Not sure where to start? Contact Antravia for a free Consultation

Disclaimer:
Content published by Antravia is provided for informational purposes only and reflects research, industry analysis, and our professional perspective. It does not constitute legal, tax, or accounting advice. Regulations vary by jurisdiction, and individual circumstances differ. Readers should seek advice from a qualified professional before making decisions that could affect their business.
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