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.

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• What is the difference between profit tax and TVA?
• What is the difference between IS and the option for the régime des sociétés de personnes?
• What is the franchise en base de TVA?
• What is the mini-réel TVA?

Updated on: 08/07/2026