For almost a year, the question of the subjugation of tourist furnishings on VAT has experienced significant developments. After a first change of tax doctrine in August 2024, new details were published in Bofip in March 2025, and, for rental companies, occasional as regular, they may mean a VAT subjugation for their furnished rental activity.
Paying VAT: Is it automatic furnished rental?
In principle, furnished rental is exempt from VAT by article 261 D of the general tax code. But some exceptions exist. Among them, the case in which, in short-term furnished rental, several so-called para-hotelières services are offered. In total of 4, it is enough that at least 3 of them are proposed so that the lessor becomes indebted of VAT. These services are as follows: the provision of breakfast, the supply of linen, regular cleaning of premises and reception, even non -personalized customers. In principle, the provision of linen and regular cleaning of premises are understood as accomplished when the linen is renewed during the stay, as well as the household, which must therefore be made during the stay of the tenants. Consequently, few short -term furnished furniture rental companies were affected by VAT, because, if the linen is often provided on arrival, and the household was made, these services are then not proposed during the stay, which prevented them to consider them as executed and therefore to take them into consideration for the possible lisking of the Loueur to VAT. But the rule was justly modified for short stays.
What are the changes about VAT for furnished rental?
The changes concern the so -called “very short duration” rentals, heard by Bofip as stays of a maximum of 5 nights. For the latter, it is precisely the constitutive actions of the provision of linen provision and cleaning of the premises that have been reassessed. Thus, for very short stays, it is now enough that the linen is provided, and that the cleaning is done on arrival in the premises so that these services are considered to be accomplished. Consequently, with two out of four performances accomplished almost automatically, the rental companies will have to be vigilant if they do not want to have to pay VAT. In this situation, it will therefore be necessary to avoid offering breakfast, and a physical welcome from tenants. This last service can also be the source of questions for rental companies. It is therefore important to keep in mind that if customers are offered a choice between a physical reception with hand delivery in hand and a reception through a key box, the service will be considered to be accomplished, even if it is the key box option which is retained by the customer. Indeed, it is enough that physical reception is proposed so that the condition is met. Consequently, rental companies must only offer the use of a key box if they want to avoid this service.
What are the consequences of a VAT subjugation?
If a rental company meets the conditions, it becomes subject to VAT, at a rate of 10%, and must therefore donate it to the State, as well as pay the declarative obligations which result from it. However, it is possible to have no VAT to pay, nor a declarative obligation to be carried out, by falling under the VAT franchise regime. Applicable by law, this regime allows any taxpayer to be exempt from VAT obligations as long as its annual revenue amount is less than € 85,000. Enough to exempt a good number of furnished rental rental companies from its payment, especially since, in their case, only the turnover corresponding to the stays fulfilling the conditions of subjugation, and not the overall turnover of the short -term rental activity, is taken into account. However, this threshold of € 85,000 was called into question by the text of the 2025 finance law which planned to lower it to € 25,000, before the discussion on this subject was ultimately postponed to the next text, that is, the 2026 finance bill. A significant drop in this franchise threshold could therefore push more rental companies to pay VAT, and the subject will be followed with attention.
