French VAT Rules: Transfer to the CIBS Postponed Until 1 January 2027

29 July 2026.

The transfer of French VAT rules to the Code of Taxes on Goods and Services (CIBS), initially scheduled for 1 September 2026, has been postponed until 1 January 2027.

The ordinance of 27 July 2026 does more than change the timetable. It also reorganises certain provisions and clarifies the practical consequences of the recodification for businesses and their advisers.

Why are the VAT rules moving to a different code?

French VAT rules have historically appeared in the General Tax Code. Their transfer to the CIBS is intended to clarify and consolidate the legislation governing taxes on goods and services.

This is principally a codification exercise: the change of code is not, in itself, intended to alter the fundamental VAT rules. It will nevertheless require references in contracts, deeds, internal procedures and professional documentation to be updated.

Effective date postponed until 1 January 2027

Ordinance No. 2026-671 postpones the transfer by four months, from 1 September 2026 to 1 January 2027. The official report explains that this will notably avoid confusion arising from implementation at the same time as the invoicing reform.

The additional period gives businesses, software providers and legal and accounting professionals more time to adapt their systems and documentation.

Input VAT deduction rules are consolidated

The provisions governing input VAT deductions, previously spread across several divisions, are regrouped in a dedicated section. The purpose is to make the legislation easier to read, without necessarily changing the tax outcome of each transaction.

Existing administrative guidance remains enforceable

An important legal certainty measure preserves administrative interpretations concerning VAT provisions currently contained in the General Tax Code after those provisions move to the CIBS, for as long as the guidance has not been withdrawn or replaced.

Taxpayers will therefore not automatically lose the benefit of existing published guidance merely because of the recodification.

Some issues remain unresolved

The ordinance does not address every issue raised during the public consultation. The official report specifically mentions the VAT chargeable event for off-plan property sales and the tax definition of a building’s completion.

Those matters may be addressed in future legislation or administrative guidance. Transactions concerned should continue to be reviewed under the rules and guidance currently in force.

What should businesses and professionals prepare?

• identify contracts and templates referring to VAT provisions in the General Tax Code;
• prepare updated references for transactions from 1 January 2027;
• check the necessary changes to accounting and invoicing software;
• retain evidence of any administrative guidance relied upon;
• monitor forthcoming legislation and guidance on outstanding issues.

Official sources

• Ordinance No. 2026-671 of 27 July 2026.
• Official report to the President of the French Republic.
• French tax authority consultation published on 18 February 2026.

The notarial office does not contractually guarantee the accuracy or currency of this information. For advice on how it applies to your circumstances, please consult a notary at our office.