A UGC creator starting as an auto entrepreneur in France usually invoices without VAT, thanks to the small business exemption. It is simple, it is comfortable, and that is exactly why crossing the threshold surprises so many people.

What the exemption changes in practice

Below the threshold your invoice carries no VAT and you add the legally required mention. You also do not recover VAT on your purchases: equipment, software, subscriptions.

Above it, you invoice with VAT, you declare it, and you recover the VAT on your professional expenses. It is not a punishment, it is a different regime, with more paperwork and a real advantage if you invest.

Why the threshold is watched all year

Because it is calculated on the turnover you actually collect, and because crossing it takes effect on a specific date, not at the end of the calendar year. One very good quarter can change your regime in the middle of a season.

The simple method: keep a table of collected turnover month by month, with a running total. Two minutes per invoice, and you see the threshold coming three months ahead instead of learning about it afterwards.

The effect on your prices

For a company client, VAT is neutral: they recover it. Moving to VAT therefore changes nothing about your appeal to brands and agencies, who are your best clients.

For a private individual, on the other hand, your final price rises. If part of your activity targets that audience, prepare the conversation.

What to do on the day you cross

Tell your regular clients with one clear sentence: from this date, invoices carry VAT at the applicable rate.

Check your outstanding quotes, because a quote accepted excluding tax does not have the same consequence as one accepted including tax.

Update your invoice template and your legal mentions.

And review recent professional purchases with your accountant, because the new regime changes the calculation on the equipment you were about to buy.

The mistake to avoid

Ignoring the subject because the number looks distant. A creator who signs two annual contracts with brands reaches the threshold faster than they think, and catching up always happens the hard way.

Where to go next

VAT is not a problem, it is a growth stage. Our guide on how to become a UGC creator covers pricing, invoicing and usage rights.

Sources

Checked on 26 August 2026. Thresholds and rates change: where this guide and the official source disagree, the official source is right.