Configure tax profiles (VAT)

Last updated March 26, 20264 min read

Create tax profiles to apply the correct VAT rates to your products. Manage standard rates, reduced rates, and exemptions for selling in France and across Europe.

How does VAT work on PayFacile?

PayFacile lets you create tax profiles that you then assign to your products. When a customer makes a purchase, the VAT rate from the assigned profile is applied automatically and displayed on the invoice.

Each product can have its own tax profile, allowing you to manage different rates depending on the nature of your products (physical goods, digital services, training, etc.).

Create a tax profile

Go to Settings → Tax, then click Add a tax profile.

  1. Profile name: use an explicit name (e.g., "VAT 20% standard", "VAT 5.5% food").
  2. Tax rate: enter the applicable percentage (20, 10, 5.5, 2.1, or 0 for exemption).
  3. Save the profile.

You can create as many profiles as needed.

VAT rates in France

VAT rates applicable in mainland France:

  • 20% — standard rate: most goods and services.
  • 10% — intermediate rate: catering, transport, renovation work.
  • 5.5% — reduced rate: basic food products, books, cultural events.
  • 2.1% — super-reduced rate: reimbursable medicines, press.

Create one profile for each rate you use.

Assign a profile to a product

Open a product in Products, then select the desired tax profile in the Tax profile field. The rate will be applied to every sale of that product.

If no profile is assigned, the product is considered tax-free (0%).

VAT display on invoices

On the generated invoice, VAT is shown with:

  • The pre-tax amount (net)
  • The applied VAT rate
  • The VAT amount
  • The total amount including VAT (gross)

If multiple products with different rates appear on the same order, each rate is detailed separately.

Exemptions and intra-community sales

VAT exemption: if your business is VAT-exempt (e.g., small business schemes), create a profile at 0% and add the appropriate legal mention in your invoice notes.

Intra-community sales (B2B): for sales to businesses in other EU countries, the reverse charge mechanism may apply (0% VAT). Verify your customer's intra-community VAT number and apply the 0% tax profile with the appropriate mention.

FAQ

What happens if I don't configure a tax profile?
If no tax profile is assigned to a product, the amount is considered tax-free (0%). No VAT line appears on the invoice.
Can I modify an existing tax profile?
Yes, you can modify the name and rate of an existing profile. The change applies to future invoices. Previously issued invoices are not affected.
Does PayFacile handle VAT on digital products sold in the EU?
PayFacile lets you assign the applicable VAT rate to each product. For digital services sold to individuals in the EU, the VAT rate of the customer's country may apply (place of consumption rule). Consult your accountant to determine applicable rates.
Do I need to collect VAT as a small business?
Small businesses may benefit from VAT exemption schemes as long as their turnover stays below legal thresholds. In that case, create a 0% profile and add the exemption notice in your invoice notes.
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