Your business has more deductible VAT on its purchases than VAT collected on its sales. You are in a VAT credit position. The good news: you can ask for it to be refunded. The important detail: the refund is not automatic. You have to request it, meet a minimum threshold and use the right form for your tax regime.
In this guide, we set out the eligibility conditions, the thresholds (€150 or €760 depending on frequency), the forms (3517-S or 3519), refund timeframes and the step-by-step procedure from your professional area on impots.gouv.fr. All thresholds and dates quoted have been checked against the official VAT credit refund page on impots.gouv.fr.
Updated August 2026.
What is a VAT credit?
A VAT credit arises when the VAT your business can deduct on its purchases, expenses and fixed assets exceeds the VAT it has collected on its sales. This is common after a major investment, when starting out, or in sectors where purchases make up a large share of turnover.
Output VAT, input VAT, VAT due: the calculation
To understand the credit, you need to go back to how VAT works. There are three concepts to distinguish:
-
Output VAT (collected) : the VAT you charge your customers on your sales or services. You pay it over to the tax authorities.
-
Input VAT (deductible) : the VAT you paid on your business purchases (equipment, services, overheads). You can recover it if it qualifies for deduction.
-
VAT due (or VAT payable): the difference between output VAT and input VAT.
If you want to calculate your VAT and simulate your balance, a dedicated tool helps you anticipate the amount to pay or the credit building up.
When is there a VAT credit?
A VAT credit arises at the precise moment when input VAT becomes greater than output VAT for a given period (the month, quarter or year depending on your regime). The balance tips in your favour. The tax authorities do not pay anything back of their own accord: it is up to you to decide what to do with the credit.
You have two options, and the choice is yours: carry the credit forward to the following periods (offsetting), or request a refund. The question deserves attention, because the right choice depends on your cash position and how often you are in credit.
Should you request a refund or carry your VAT credit forward?
A refund is never compulsory. This is one of the least known points on the subject: many business owners think a credit will be refunded automatically. It is not. You choose between two mechanisms, depending on your cash position.
Carrying forward to the next period (offsetting)
Offsetting is the default option. You leave your VAT credit to be used against the following tax periods. As soon as a later return shows VAT payable, the credit absorbs it. No specific procedure, no threshold to meet.
This is the simplest solution. It suits businesses that generate a one-off credit (a large purchase in a given month) and know they will be paying VAT the following month.
Requesting a refund: when does it make sense?
A refund makes the most sense in three situations:
-
Your credit is structural. Your activity consistently generates more input VAT than output VAT. This happens in wholesale trade, in activities with large stock purchases or with regular investment in fixed assets.
-
You need cash straight away. A refund releases tied-up funds rather than waiting several months for offsetting.
-
You are starting your business. You have incurred launch costs (equipment, fit-out, marketing) without yet generating any output VAT. The law allows you to request a refund of credits relating to these start-up costs.
In these situations, requesting a refund is often more relevant than carrying forward. You still need to meet the conditions and thresholds.
What are the conditions for obtaining a VAT refund?
Any business liable for VAT, whatever its tax regime, can request a refund of its credit. This is the principle set out by the tax authorities on impots.gouv.fr. Eligibility therefore does not depend on your sector or size, but on your regime and how often you make requests.
Two conditions always apply:
-
Your request must be made when filing a return that shows the credit. You cannot request a refund outside a return.
-
The VAT concerned must have been paid on transactions that qualify for deduction. VAT that is not deductible (personal expenses, certain passenger cars) can never generate a refundable credit.
Minimum refund thresholds
This is where frequency really matters. The minimum threshold for making a request depends on how often you request a refund:
Tax regime — Frequency — Minimum threshold — Form — Request deadline
Standard real regime, mini-real, RSI (simplified tax regime) — Annual — €150 — 3517-S (CA12) — 2nd working day after 1 May (calendar financial year)
Standard real regime, mini-real, RSI — Monthly — €760 — 3519 — Monthly (with the return)
Standard real regime, mini-real, RSI — Quarterly — €760 — 3519 — Month after the end of the quarter
RSI (simplified regime) — Half-yearly — €760 — 3519 — July, December (depending on year-end)
Two benchmarks to remember: €150 for an annual refund, €760 for refunds at shorter intervals (monthly, quarterly, half-yearly). Below these thresholds, the request is not admissible and the credit must be carried forward.
A point on the half-yearly refund under the simplified regime (RSI): it only covers credit arising from the purchase of fixed assets, excluding intra-EU acquisitions and self-supplies. This refund is provisional. You must attach the invoices showing the deductible VAT on fixed assets that gave rise to the credit.
Eligible businesses
All tax regimes subject to VAT are covered: standard real regime, mini-real, simplified tax regime (RSI) and simplified agricultural regime (RSA). The same business can use several refund options depending on its needs: annual on the adjustment return, monthly on its regular VAT returns.
A special case provided for by law: a business that is starting out, without yet having made any sales or services subject to VAT, can still request a refund of the VAT paid on its launch costs. The requirement to have output VAT does not apply at start-up.
VAT refunds according to your tax regime
The rules vary depending on whether you are under the simplified tax regime (RSI) or the standard real regime. Thresholds and forms change, as do deadlines. Here are the details, point by point.
Annual refund (simplified tax regime, RSI)
The annual refund is requested when you file your annual adjustment return (form 3517-S, known as CA12). The minimum threshold is €150. The request is made by filing the annual return electronically, showing the credit.
Two cases depending on your year-end:
-
Financial year aligned with the calendar year (year-end on 31 December): the request must be filed no later than the second working day after 1 May of the following year.
-
Non-calendar financial year (year-end during the year): the request must be made within three months of the year-end , using form 3517-S-SD (CA12E).
The annual refund is the one most used by RSI businesses, because it matches the natural rhythm of their VAT return. It is also the simplest: a single procedure per year.
Half-yearly refund (standard real regime, mini-real and RSI)
The half-yearly refund is an option for businesses that do not want to wait until the end of the year. Under the simplified regime (RSI), it only applies to credit arising from the purchase of fixed assets, with a minimum threshold of €760. Filing dates are in July and December, depending on your year-end.
This option makes sense if you are financing an investment programme spread over the year and want to recover the VAT before the annual adjustment.
Quarterly refund (standard real regime or mini-real)
Businesses under the standard real regime or mini-real can request a quarterly refund, provided their quarterly VAT return shows a credit of at least €760. The request is made when filing the quarterly VAT return, using form 3519.
The filing date falls in the month after the end of the calendar quarter: April for the first quarter, July for the second, October for the third.
Monthly refund (standard real regime)
This is the fastest way to recover your VAT. Businesses under the standard real regime (or mini-real) that file monthly returns can request a refund every month, as long as the monthly return shows a credit of at least €760. The form used is 3519, filed together with the monthly VAT return.
For a business with a structural, recurring VAT credit, the monthly option under the standard real regime turns a wait of several months into a monthly cash flow. This is often why a business opts for VAT under the standard real regime rather than the simplified regime: to speed up recovery of the credit.
How to request a refund of your VAT credit: the step-by-step procedure
The refund request is made entirely online, from your professional area on impots.gouv.fr. Here are the practical steps.
Step 1: check your eligibility and the amount of your credit
Before doing anything, confirm two things. First, that your VAT return (monthly, quarterly or annual) does show a credit. Second, that the credit reaches the minimum threshold for your frequency: €150 for annual, €760 for monthly, quarterly or half-yearly. Below the threshold, no request is possible.
Also check that all the input VAT behind the credit relates to transactions that qualify for deduction. Misallocation (non-deductible VAT recorded as deductible) is one of the most common reasons for rejection.
Step 2: log in to your professional area on impots.gouv.fr
The request is filed from your professional area (the business section of impots.gouv.fr), under the electronic filing of VAT returns. You can access your current returns and the refund request forms.
If your accounting firm has EDI-TDFC or EDI-TVA access (electronic data interchange), it can file the request for you as part of its bookkeeping and tax filing engagement.
Step 3: complete the right form (3517-S or 3519)
The form depends on your regime and frequency:
-
Form 3517-S (CA12) : for the annual refund of businesses under the simplified tax regime (RSI) or the simplified agricultural regime (RSA). You request a refund of the year's credit when filing the annual adjustment return.
-
Form 3519 : for monthly, quarterly and half-yearly refunds. This is the form for VAT credit refund requests during the year, whatever your regime (standard real, mini-real, RSI, RSA).
Enter the exact amount of credit to be refunded, attach the supporting documents requested (in particular invoices for fixed assets for the half-yearly RSI refund), then submit the electronic filing.
Step 4: track the request and the refund timeframe
Once filed, the request is processed by the French public finance directorate (DGFiP). You can track its status from your professional area. The credit is paid into the company's bank account.
During processing, the tax authorities may ask for additional supporting documents (invoices, contracts). This request suspends the refund timeframe until you provide the documents. Respond quickly: a prompt reply speeds up payment.
How long does a VAT credit refund take?
The DGFiP has a set period to refund the credit. Beyond that period, and if it has not requested additional documents justifying a delay, late-payment interest is paid to you automatically (a mechanism set out in the BOFiP, reference BOI-TVA-DECLA-20).
In practice, the refund timeframe varies depending on the volume of pending requests and the complexity of the file. Monthly and quarterly requests are generally processed faster than annual refunds, which are concentrated in the CA12 filing period (May–June) and face a processing peak.
Planning tip: if your cash flow depends on a fast refund, favour monthly or quarterly requests rather than waiting for the annual return. The effect on your cash is more predictable and more regular. Keeping track of the VAT instalment calendar helps you coordinate cash flows.
Refusal, rejection or request for documents: what should you do?
A refund request can be rejected, postponed or met with a request for documents. Anticipating these situations avoids delays and cash flow pressure.
Common reasons for rejection
The most common rejections are due to formal errors:
-
The credit declared is below the minimum threshold (€150 or €760 depending on frequency).
-
The input VAT includes transactions that do not qualify for deduction (passenger cars, personal expenses).
-
The form filed does not match your regime or frequency.
-
The underlying return contains an inconsistency (for example, a credit declared but VAT due shown).
These errors can be corrected. They are also the easiest to avoid with a systematic review before filing.
Responding to a request for documents from the tax authorities
The DGFiP may ask for invoices, contracts or supporting documents to check where the credit comes from. This is not a rejection, but part of the review. You have a deadline to respond (generally 30 days). Failing to respond in time amounts to a rejection in practice.
So keep all your purchase and fixed asset invoices, filed by period. This is the best preparation for any request from the tax authorities. This document organisation secures all your filing obligations, not just your VAT refund.
Appeals and specific audits
If you consider a rejection unjustified, you can appeal to the superior of the officer who made the decision. A prior administrative claim is mandatory before any court action.
A specific tax audit may also be carried out on large or recurring refund requests. The authorities then check that the transactions behind the credit are genuine. Rigorous bookkeeping, with compliant invoices and a clear link to the deductible VAT, is the best defence.
This is exactly where a chartered accountant adds value: they anticipate document requests, secure the allocation of VAT and make sure every credit claimed can be defended.
Refunds of foreign VAT: a separate case
Refunds of VAT paid in another EU country, or outside the EU, are not handled with forms 3517 or 3519. They follow a separate procedure governed by the EU 8th and 13th VAT Directives.
For intra-EU VAT, the request is filed through a dedicated portal, in the country of refund. Timeframes and documents differ from the French procedure. This topic has its own page: see the full procedure in our guide to intra-EU VAT.
FAQ: your questions about VAT refunds
What is a VAT credit?
A VAT credit arises when the input VAT on your purchases exceeds the output VAT on your sales during a tax period. The authorities do not pay this credit back of their own accord: it is up to the business to choose between carrying it forward (offsetting) and requesting a refund.
What is the minimum amount to request a VAT refund?
The threshold is €150 for an annual refund and €760 for a monthly, quarterly or half-yearly refund. Below these amounts, the credit must be carried forward to the next period.
Which form should you use to request a VAT refund?
Form 3517-S (CA12) is used for the annual refund under the simplified regime. Form 3519 is used for monthly, quarterly and half-yearly refunds, whatever the regime. Both are filed online from the professional area on impots.gouv.fr.
How long does a VAT credit refund take?
The refund timeframe varies with the volume of pending requests and the complexity of the file. Beyond the legal deadline, and unless the authorities have requested supporting documents, late-payment interest is paid automatically. Monthly and quarterly requests are generally processed faster than annual refunds.
Do you have to request a refund of your VAT credit?
No. A refund is never compulsory. The business can choose to carry its credit forward (offsetting) to the following periods. The credit will then absorb future VAT payable. This is the default and simplest option.
How can you track your VAT refund request?
You can track it from your professional area on impots.gouv.fr, in the section for your procedures and returns. The status of the request (being processed, documents requested, paid) is shown there. Your chartered accountant can also track the request if they have electronic filing access.
What should you do if a VAT refund request is rejected?
First check the reason for rejection: threshold not reached, non-deductible VAT recorded in error, wrong form. Correct it and refile if the request is valid. If you disagree with the authorities, you can appeal to a superior and then file a formal tax claim.
Can a micro-entrepreneur request a VAT refund?
No. Micro-entrepreneurs fall under the VAT exemption threshold scheme (franchise en base): they do not charge VAT and do not recover it. They are not liable for VAT unless they exceed the exemption thresholds or have opted to pay VAT. The credit refund mechanism only applies to businesses liable for VAT.
What is the difference between carrying forward and refunding a VAT credit?
Carrying forward (offsetting) leaves the credit for the following periods: it will absorb your future VAT payable, with no procedure or threshold. A refund pays the credit into your bank account, provided you reach the minimum threshold and file a request using the right form.
When should you request the annual VAT refund (RSI)?
The annual request is made when filing the adjustment return (form 3517-S, CA12), no later than the second working day after 1 May for a financial year ending on 31 December. For a non-calendar financial year, the request is made within three months of the year-end.
Get support with your VAT refund requests
A VAT credit refund is a real cash flow lever, but it demands rigour: the right form, the right threshold, the right timing and invoices that can be defended. A single misallocation of input VAT can be enough to get a request rejected and tie up funds for several months.
Our firm, led by Steeve Elharrar, chartered accountant and statutory auditor, formerly with KPMG and Deloitte, supports owners of small and medium-sized businesses and freelancers with the full management of their VAT: calculation, returns, credit tracking and optimising the refund timetable for your regime. We secure each request so that it is processed without delay or rejection.
Your situation depends on your regime, the size of your credits and your cash needs: request a quote, and we will reply with a precise proposal, not a template quote.
Sources: impots.gouv.fr, VAT credit refunds ; BOFiP, VAT, refund requests ; service-public.fr. Thresholds and forms checked in August 2026. General content does not replace personalised advice: for decisions and procedures, contact your chartered accountant.