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What is the difference between franchise en base de TVA and a TVA-exempt activity?

✅ In brief


The franchise en base depends in particular on thresholds. Exemption or hors champ depends more on the nature of the activity or specific rules.


🧭 What you need to know


  • Under the franchise en base, the business may carry out transactions normally within the scope of TVA, but is not liable for TVA while the regime applies: it does not charge it and does not deduct it.
  • A TVA-exempt activity may be relieved from TVA because of its nature.
  • A hors champ activity does not follow the standard TVA mechanism.
  • These situations must not be confused.


🛠️ How Leegal supports you


  • Leegal helps you understand the wording shown during the creation process and prepare a clearer file.
  • The flow can organize information, documents and points to watch, but it does not replace a personalized review.
  • If your situation is specific, it is still preferable to ask a chartered accountant, a lawyer or another qualified professional for advice.


🔎 Points to check


  • The exact nature of the activity.
  • The specific applicable rules.
  • Turnover thresholds.
  • Professional advice if in doubt.


⚖️ Limits to know


  • Leegal is not a law firm or an accounting firm.
  • Leegal explains the options and helps prepare formalities, but does not choose for you.
  • Tax, social security or personal asset consequences can depend on your actual situation.


📌 Key takeaway


Franchise, exemption and hors champ do not mean the same thing.



Updated on: 06/07/2026

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