VAT exemption or VAT registered: your VAT status

Before configuring your VAT classes, settle a prior question: do you collect VAT or not? The answer depends on your real tax status — not on a Khroma choice. This article walks through the two possible statuses and how to set them up correctly.

Where to find it

Dashboard → Shop → Tax, section VAT Collection.

The setting is a two-position toggle:

• VAT enabled — VAT is collected on your sales according to your tax classes.
• VAT disabled — VAT exemption — no VAT is collected on your sales.

The toggle directly controls display: VAT classes and their configuration only appear when collection is enabled.

Your status does not depend on Khroma

Khroma is a tool. Your VAT status results from your real tax situation (tax regime, turnover, legal status). Khroma simply asks you to indicate it correctly so that invoices and calculations remain compliant.

If you don't know your status, two resources:

• Your accountant.
• The relevant tax authority: in France, the Service des impôts des entreprises (SIE) or impots.gouv.fr.

VAT exemption (VAT disabled)

VAT exemption (in France: franchise en base) is a tax regime that exempts small businesses from collecting and remitting VAT. It typically applies to sole traders, micro-entrepreneurs, and micro-BNC whose turnover stays below certain thresholds.

When you have VAT exemption:

• You do not charge VAT to your buyers.
• You also do not reclaim VAT on your business purchases.
• Your invoices carry a specific note. In France: "VAT not applicable, art. 293 B of the CGI".

On Khroma, configure as follows:

1. Toggle VAT Collection to off.
2. Enter the mandatory legal note in the Invoice footer field of the Legal Identity & Invoices section. For France, copy: VAT not applicable — Article 293 B of the French CGI.

From there, the order summary no longer displays a VAT line, and the invoice issued at payment carries your footer note.

Exemption thresholds (France)

Three regimes coexist and the applicable threshold depends on the nature of your activity. Identify yours before configuring your VAT status.

Author-artist (specific regime covering the delivery of works + assignment of copyright, affiliated with Maison des Artistes or former AGESSA) — this is the regime applying to the majority of professional artists in France.

Sole trader — sale of goods — applies to artists on a standard micro-enterprise selling physical works shipped to buyers (outside the author-artist regime).

Sole trader — services / freelance (BNC) — less common for the sale of works itself, but may apply to side activities (classes, talks, services).

| Regime | Exemption threshold | Increased threshold | | --- | --- | --- | | Author-artist | €50,000 | €55,000 | | Sole trader — sale of goods | €85,000 | €93,500 | | Sole trader — services / BNC | €37,500 | €41,250 |

These thresholds are those in force in 2025, carried over for 2026 (successive reforms have been dropped). The increased threshold is the cap that triggers immediate VAT registration if exceeded mid-year. The exemption threshold is the annual cap; a breach for two consecutive years also causes the loss of exemption from the following 1 January.

If you're unsure which regime applies to you, your accountant is the right contact. The distinction between author-artist and micro-enterprise is not always obvious and has tax and social-security consequences far broader than VAT alone.

If your N-1 turnover exceeds the exemption threshold, you become VAT-registered the following year. If you exceed the increased threshold mid-year, the switch is immediate.

VAT registered (VAT enabled)

VAT registration is the standard regime. You collect VAT on your sales, declare it to the administration, and can reclaim VAT on your business purchases.

When you are VAT-registered:

• Each sale carries a VAT rate, set by the class you assign to the listing.
• The issued invoice details net, VAT, gross.
• You declare collected VAT and remit it according to your regime (monthly, quarterly, yearly).

On Khroma:

1. Toggle VAT Collection to on.
2. Enter your VAT number in the Legal Identity & Invoices section.
3. Configure your VAT classes — see Configure your VAT classes.

Artists based outside France

If you reside outside France, the mechanism stays the same: indicate on Khroma the status that corresponds to your country's legislation.

• In Belgium, the small business exemption operates similarly to the French franchise.
• In the United Kingdom, the VAT registration threshold applies similarly.
• In Switzerland, the non-VAT-registered regime applies below a turnover threshold.

Adapt your invoice footer note based on your country. Khroma does not pre-fill a footer text; you enter the text appropriate to your situation.

What the buyer sees

VAT disabled:

• No VAT line in the order breakdown.
• Label No VAT on the listing.
• Exemption note (art. 293 B or equivalent) in the invoice footer.

VAT enabled:

• Line VAT included ({rate}%) in the breakdown.
• The displayed rate is the one of the class assigned to the listing, adjusted by per-country rates if configured.
• Net/VAT/gross detail on the invoice issued by Stripe.

Switching status

You can switch between the two statuses at any time via the toggle. No past order is modified retroactively: invoices already issued keep their original note.

In practice, a status change happens when your situation changes:

• You exceed the exemption threshold → you become VAT-registered. Enable collection on Khroma on the day your new status takes effect, and configure your classes.
• You return to exemption (early activity, or after a turnover drop) → disable collection and update the footer note.

Summary

• Micro-entrepreneur / sole trader below thresholds → disable VAT collection. Note art. 293 B of the French CGI (or equivalent).
• VAT-registered seller → enable collection. Configure your VAT classes and your VAT number.
• Artist based outside France → indicate the status corresponding to your country's legislation.

Frequently asked questions

I'm starting out, I'm below the thresholds. Should I enable VAT?

No. As long as you are below the exemption thresholds and you have not voluntarily opted into VAT registration, disable collection. You'll switch the day you exceed the threshold, or if you opt in (sometimes useful to reclaim VAT on substantial business investments).

What happens if I forget to enable VAT while I'm registered?

Your Khroma invoices will be issued without VAT, which creates a compliance problem with your tax filings. Regularise as soon as possible and consult your accountant for already-placed sales.

Is the "art. 293 B of the CGI" note mandatory?

If you have VAT exemption in France, yes. Without that note (or its legal equivalent), your invoice is not compliant. Khroma lets you enter the text freely in the Invoice footer field — use the exact wording expected by the administration.

Can I enable VAT without a VAT number?

Technically yes — the field is optional on Khroma. But a VAT number is expected on a compliant VAT invoice in practice. Request one from your tax office if you don't have one yet.

If I'm VAT-registered and sell in multiple EU countries, do I charge French VAT or the buyer's country VAT?

It depends on your EU turnover. Below €10,000 of intra-EU B2C sales per year, you charge French VAT. Above that, you apply the buyer's country rate (OSS — One Stop Shop scheme). On Khroma, configure per-country rates within the relevant VAT class. See Configure your VAT classes.