First Insights into the VAT and Environmental Tax Measures
The Finance Bill for 2026, submitted on 14 October 2025, sets out the main tax changes that will be debated by Parliament over the coming weeks.
Several provisions relating to VAT and related taxes are worth noting:
- Article 25 – The Bill maintains the 2025 VAT thresholds, giving small businesses greater legal certainty and predictability, while protecting them from possible reassessments.
It also introduces new thresholds for the construction sector: €37,500 and €25,000, effective from 1 January 2026. - Article 22 – A new €2 tax per item will apply to shipments valued under €150, but only when a simplified Customs declaration is used.
Although presented as a temporary measure, this tax could pave the way for future harmonisation at EU level. - Article 21 – The Bill also introduces a plastic packaging tax, scheduled to increase gradually until 2030, alongside a VAT reduction on waste management services.
These changes form part of France’s environmental transition strategy, creating new compliance obligations for producers and importers while offering greater visibility on long-term taxation.
Parliamentary debates began in committee on 20 October 2025 and will continue in public session from 24 October. The final vote is expected on November 4th, with adoption by the end of December.
Easytax will provide an update once the final version of the Bill is adopted.
