Honestly, trying to keep up with the French tax code feels like trying to read a menu in the dark. Just when you think you've got the 2025 rules down, the Finance Bill for 2026 (PLF 2026) arrives with a whole new set of "simplifications" that—let's be real—usually feel like more paperwork. If you're running a small or medium-sized enterprise (SME) in France, you've probably heard whispers about the CVAE tax disappearing (again) or new e-invoicing dates.
It’s a lot.
But here’s the thing: while the big headlines focus on the massive surtaxes for giants like LVMH or Google, there are specific, quieter shifts in France SME tax news that will hit your bank account directly. We're talking about changes to local taxes, a new digital "parcel fee," and a major update on when you actually have to start using those fancy e-invoicing platforms.
The CVAE Rollercoaster: Is it Finally Leaving?
For years, the French government has been teasing the total abolition of the CVAE (Cotisation sur la Valeur Ajoutée des Entreprises). This is that local tax based on your company's added value that everyone loves to hate.
Initially, it was supposed to be gone by now. Then the 2025 budget pushed the "final" death date all the way to 2030 because, well, the state needed the cash.
But wait. There’s a twist in the 2026 plan.
The new government, currently led by Michel Barnier (though politics here moves fast), has proposed an accelerated phase-out. Instead of waiting until 2030, the CVAE is now scheduled to be completely buried by 2028.
For 2026, the maximum rate is dropping from 0.28% to 0.19%. It’s not a massive windfall, but for an SME with tight margins, every thousand euros counts. If you’re a micro-entrepreneur or a very small firm with turnover under €500,000, you aren't paying this anyway, but for those of you growing into that "medium" bracket, it’s a light at the end of the tunnel.
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The E-Invoicing Headache Just Got a New Deadline
If there is one piece of France SME tax news that has caused more grey hair than the rest, it’s the mandatory e-invoicing rollout.
You might remember the original plan was for everyone to be on board by 2024. Then 2025. Now, the 2026 Finance Bill has solidified the timeline, and it’s a "good news, bad news" situation.
- September 1, 2026: This is the big one. Large and mid-cap companies (Entreprises de Taille Intermédiaire) must start issuing electronic invoices. Crucially, every single business in France—including the smallest one-person shop—must be able to receive them by this date.
- September 1, 2027: This is your "hard" deadline if you are an SME or a micro-enterprise. By this date, you must be issuing e-invoices for all B2B transactions.
The government basically realized that forcing millions of small businesses to change their entire accounting workflow by early 2026 was a recipe for disaster. They’ve added some "simplifications," like removing the need to report international invoices at a "line-item" level. Essentially, they just want the totals now. It’s a small win for your bookkeeper.
That New 2% "Holding Company" Tax
Here is something that might catch you off guard if you use a holding company (société holding) to manage your business assets.
The 2026 budget introduces a 2% tax on the financial assets of certain holding companies.
The goal? To stop people from "hoarding" cash inside a company structure to avoid personal income tax. If your holding company has assets worth more than €5 million and more than 50% of its income is "passive" (like dividends or interest), you might be looking at this new bill.
The government is trying to distinguish between "productive" companies—the ones actually making stuff or selling services—and "patrimonial" companies that just sit on piles of cash. If you’re a typical active SME owner, you’re likely safe, but if you've been using a holding company to park significant wealth, it’s time to call your tax advisor.
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The "Amazon Tax" for Small Parcels
If your business relies on importing small components or products from outside the EU (think China or the US), there’s a new "handling fee" coming.
Starting in 2026, there’s a proposed €2 fee per parcel for shipments valued under €150.
Technically, it’s a way to fund customs controls and "level the playing field" against giant non-EU e-commerce sites. It sounds small, but if you’re importing 50 small orders a month for your workshop, that’s an extra €1,200 a year gone. It’s a classic example of how "minor" tax news can nibble away at your bottom line.
Green Incentives: The Carrot vs. The Stick
France is still leaning heavily into the "Green Industry Tax Credit" (C3IV).
If your SME is involved in batteries, solar panels, wind power, or heat pumps, you can snag a tax credit ranging from 20% to 60% of your investment. The 2026 discussions suggest these incentives are staying, even as the government looks for ways to cut the deficit.
However, the "stick" is also getting heavier.
Expect higher taxes on company cars that aren't electric and more "polluter pays" fees for industrial waste. If you’re still driving a diesel van for the business, 2026 is going to be the year the malus (penalty) really starts to sting.
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The VAT Threshold "Fake Out"
There was a lot of talk about lowering the VAT exemption thresholds (franchise en base de TVA). For a minute there, it looked like thousands of tiny businesses were going to be forced to start charging VAT much earlier than expected.
Update: The French Senate actually rejected the proposal to lower these thresholds in late 2025.
For now, the status quo holds. Most service-based micro-businesses can still stay VAT-free up to around €37,500 in turnover (with a slightly different limit for goods). This is a massive relief. It keeps the "micro" in micro-enterprise and avoids the administrative nightmare of VAT filings for the smallest players.
Actionable Steps for Your Business
Don't just wait for your Avis d'Imposition to show up in the mail. Take these steps now to stay ahead of the 2026 changes:
- Audit your "Holding" Cash: If you have a holding company with over €5M in assets, check your "passive income" ratio immediately. You might need to reinvest that cash into "productive" assets to avoid the new 2% tax.
- Software Check: Ask your accounting software provider (or your comptable) if they are "Partner Dematerialization Platform" (PDP) ready. You need to be able to receive digital invoices by September 2026. No excuses.
- Review Import Costs: If you buy small parts from abroad, factor that €2-per-parcel fee into your 2026 pricing. It’s better to raise prices by 50 cents now than to take a hit later.
- Watch the CVAE: When you do your 2026 projections, remember to apply the lower 0.19% rate. It might free up just enough cash to hire that part-time assistant you’ve been eyeing.
The reality of French tax law is that it’s always a moving target. The 2026 Finance Bill shows a government trying to balance a massive budget deficit with the need to keep small businesses breathing. You won't get the huge breaks the industrial giants get, but the CVAE reduction and the VAT threshold freeze are real wins you can take to the bank.
Keep your eye on the official Bulletin Officiel des Finances Publiques (BOFiP) as we get closer to the end of the year, as that's where the final, nitty-gritty applications of these laws are published.