III: Exempt transactions

Articles in this section · 13

261261 A261 B261 C261 D261 E261 G262262 bis262 ter262-0 bis262-00 bis263

Article 261 C

French General Tax CodeIn force
Ask for lawyer reviewed or certified translation

Updated 8 Nov 2023

The following are exempt from value added tax:

1° Banking and financial transactions:

a.The granting and negotiation of loans, the management of loans carried out by the person who granted them, securities lending carried out under the conditions provided for in articles L. 211-22 to L. 211-26 of the Monetary and Financial Code and repos carried out under the conditions provided for in articles L. 211-27 to L. 211-34 of the same code;

b. The negotiation and assumption of commitments, sureties and other securities and guarantees as well as the management of credit guarantees carried out by the person who granted the credit;

c. Transactions, including negotiation, relating to deposits of funds, current accounts, payments, transfers, claims, cheques and other negotiable instruments, with the exception of debt collection;

d. Transactions, including negotiation, involving currencies, banknotes and currencies that are legal means of payment with the exception of collector coins and banknotes;

e. Transactions, other than those of custody and management relating to shares, units in companies or associations, bonds and other securities, with the exception of securities representing goods and interest shares the possession of which ensures in law or in fact the allocation in ownership or in enjoyment of an immovable property or a fraction of an immovable property;

f. The management of undertakings for collective investment in transferable securities referred to in Article 1(2) of Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) and other undertakings for collective investment with similar characteristics. The list of these undertakings is set by decree. It includes, in particular, undertakings covered by paragraphs 1, 2 and 6 of sub-section 2, sub-paragraph 1 of paragraph 1 or paragraph 2 of sub-section 3 or sub-section 4 of Section 2 of Chapter IV of Title I of Book II of the Monetary and Financial Code;

g. Transactions relating to gold, other than gold for industrial use, when carried out by credit institutions, investment service providers, money changers, discounters and remisiers, or by any other person who makes this their principal activity;

2° Insurance and reinsurance transactions as well as services relating to these transactions carried out by insurance brokers and intermediaries;

3° Deliveries at their official value of revenue stamps and postage stamps with current or franking value in France.

Mariela Petrova

Need help applying this article to your situation?

A registered French Lawyer explains what applies to your business — in English, fixed fee.

within 48h

Fixed Fee

Talk to a lawyer
Previous articleArticle 261 BNext articleArticle 261 D
Common Questions

Working with a corporate lawyer in France — Q&A

Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

Yes — most of our clients are foreign suppliers, investors or holding entities. We bridge the gap between French law and your home jurisdiction's expectations and deliver everything bilingually.

The SAS (Société par Actions Simplifiée) is the default choice for most international structures: flexible governance, single shareholder allowed, no minimum capital, and works cleanly with foreign holding entities. We assess SARL, SA, SCI on the merits when the situation calls for it.

Yes — communications with a French avocat are protected by the secret professionnel (Article 66-5 of the Law of 31 December 1971). This protection is broader than the common-law attorney-client privilege and applies to written and oral exchanges.

We work on fixed fees for clearly scoped engagements (incorporation, contract drafting, audits) and on monthly retainers for ongoing advisory. Hourly billing is the exception, not the default. You always know the cost before work starts.

Typical timeline is 2–3 weeks from KYC kick-off to RCS registration, assuming standard documentation. Holding-company structures, foreign-shareholder identification or in-kind contributions can extend this — we flag the gating items at the first meeting.

Absolutely. We routinely coordinate with your in-house counsel, expert-comptable or notaire — pragmatic collaboration is the norm, not the exception. We send them everything they need to do their part without duplicating work.

Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

English · French · Russian

Ready When You Are

Talk To A Corporate
Lawyer In France.

A 20–30 minute call, in English, to scope the engagement. No obligation, no preliminary fee. You will leave the call with a clear view of what the work will cover and what it will cost.

Talk To A Corporate Lawyer+33 1 84 88 31 00
First EngagementFixed Fee

Talk to a French lawyer.

Reply within 24 hours.

Communications protected by professional secrecy — secret professionnel de l'avocat, Article 66-5 of the Law of 31 December 1971.

Continue Reading

Related corporate services in France

01 / Setup

Setting up a French company

Choose between SAS, SARL, SA or SCI — and structure your first French entity around how you actually plan to operate.

Read More
02 / Operating

French commercial contracts

Distribution, agency, supply, services and IP licences — drafted around the protections French law actually gives.

Read More
03 / Disputes

Business disputes & litigation

Shareholder conflicts, commercial breaches and pre-litigation strategy — handled by the same team that knows the file.

Read More