Once your VAT registration in France is complete, your foreign company must periodically declare the VAT it collects on sales and the VAT it deducts on purchases. Two forms coexist: the CA3 and the CA12.
The choice is not free: it follows from the taxation regime that applies to your situation. This article explains the difference between the two returns, what each involves in practice, and the mistakes to avoid.
Two returns, one objective
Whichever form applies, the objective is the same: determine the net VAT payable to the French tax authorities, or the VAT credit you hold. The difference lies in filing frequency, in how VAT is paid and in the level of detail required.
The CA3: the normal regime
The CA3 is filed monthly, or quarterly when the annual amount of VAT due is low. It reports the transactions of the period:
- taxable sales in France;
- exempt or reverse-charged transactions;
- intra-EU acquisitions;
- deductible VAT on purchases.
This is the most common regime for foreign companies registered in France. It gives a detailed, month-by-month view of your VAT position, which helps manage cash flow and spot anomalies quickly.
The CA12: the simplified regime
Below certain turnover thresholds, a business may fall under the simplified regime. It then files an annual CA12 return and pays instalments during the year, calculated on the basis of the previous financial year. The settlement takes place when the annual return is filed.
Thresholds change over time: check them with the tax authorities or an adviser before relying on this regime. For a company starting in France, eligibility also depends on the nature of the activity.
Comparing the two regimes
| Criterion | CA3 – normal | CA12 – simplified |
|---|---|---|
| Frequency | Monthly (or quarterly) | Annual, with instalments |
| VAT tracking | Precise, period by period | Overall, settled at year-end |
| VAT credit | Refund possible during the year | Mainly at the annual return |
| Administrative workload | More regular | Concentrated on one deadline |
Setting up your VAT return: the steps
For the first step, see our VAT registration page.
Preparing your returns ahead of time
Reliable VAT returns are built upstream, when invoices are issued and booked. A few habits reduce errors considerably:
- keep your sales and purchase ledgers aligned with the VAT codes used on each invoice;
- check each month that reverse-charged and exempt transactions are reported on the return;
- agree an internal closing calendar so that filing and payment happen within the deadlines;
- review your regime and filing frequency whenever your activity or turnover changes significantly.
For a European company new to French rules, invoicing practices differ from one country to another, so these checks matter even more. The exact rules depend on your situation and should be confirmed.
The most common mistakes
- reporting transactions in the wrong period, because the VAT tax point rules are not mastered;
- forgetting to report reverse-charged or exempt transactions, which must still appear on the return;
- deducting VAT without a compliant invoice;
- failing to file a “nil” return: even with no transactions, the return is still due.
A mistake that has been spotted can be corrected; read our article correcting a VAT return before an audit.
How Hanoutax can help
Hanoutax, a French VAT agent acting as tax agent (mandataire fiscal), works out with you the right regime and filing frequency, prepares your returns from your data, reconciles them with your other obligations (recapitulative statement, EMEBI) and files them on time.
We act as an agent before the tax authorities, which is not the same as a fiscal representative in France in the strict sense: see our fiscal representative France page for the difference. Also discover our VAT returns service.
FAQ
Can I freely choose between the CA3 and the CA12?
No. The choice follows from the taxation regime that applies to your situation, notably your turnover and the nature of your activity.
What if I have no transactions in the period?
A “nil” return is still due. Omitting it can lead to reminders or penalties.
Is the CA3 monthly or quarterly?
It is monthly, and may be quarterly when the annual amount of VAT due is low. The frequency should be confirmed for your situation.
Is the normal regime better when I have a VAT credit?
Often yes, because the VAT credit can be recovered faster during the year, which helps when starting an activity.
Must a foreign company register first?
Yes. Filing VAT returns requires a French VAT number, obtained through VAT registration in France.
Unsure about your VAT regime?
Related reading
Informational content, not legal advice. The rules that apply depend on your situation.
