Implications for Businesses and Tax Professionals
France is continuing to modernise its tax legislation with the reorganisation of VAT into the “Code des Impositions sur les Biens et Services” (CIBS). The new structure will take effect from 1 September 2026. This reform does not change the substance of VAT rules; rather, it reorganises and clarifies how they are presented in law.
The CIBS will now group together all indirect taxes that were previously spread across the French Tax Code. VAT will be moved into Book II of the new code, structured by topic : scope of application, VAT rates, exemptions and reporting obligations. The aim is to improve readability and legal consistency, without altering the underlying tax framework.
For businesses, this reform means that official documents and IT systems will need to be progressively updated. Invoices, contracts and VAT returns will have to refer to the new CIBS provisions, although references to the former Tax Code will still be allowed until 31 December 2027. Accounting and invoicing software will also need to be adapted to ensure legal compliance of VAT references.
In practice, the recodification should make VAT legislation easier to navigate, harmonise definitions and reduce the risk of interpretative uncertainty, while maintaining legal certainty for taxpayers. The VAT rules themselves remain unchanged; however, businesses should start preparing for the transition.
