VAT on electricity rebilling: classic furnished or para-hotel?
Rebilling electricity to your Airbnb guests doesn't follow the same rules depending on your tax regime. Classic furnished tourism rental or para-hotel activity: the VAT can shift dramatically. Understand precisely which one applies to your business.
Two regimes, two opposite VAT treatments
In France, classic furnished tourism rentals are considered a civil activity. As such, they fall outside the VAT scope under article 261 D 4° of the CGI (French Tax Code). You bill the nightly rate excluding VAT, and by extension any electricity rebilling to the guest follows the same regime. No VAT is collected, but no VAT is recoverable on your purchases of hardware, maintenance, or energy.
The regime switches as soon as you offer at least three of the four so-called para-hotel services: breakfast, regular cleaning during the stay, provision of household linen, and personalized guest welcome. You then enter the VAT scope at the reduced rate of 10 %, under article 279 a of the CGI. This qualification transforms your civil activity into a commercial activity assimilated to hotel services.
Energy rebilling has no standalone regime: it follows the main rental regime. In classic furnished, you rebill without VAT. In taxable para-hotel, rebilled electricity is included in the 10 % taxable base. This simple rule has major consequences on your invoicing, reporting obligations, and above all your ability to recover VAT on your equipment investments.
Three steps to frame your rebilling VAT
A clear tax method to avoid invoicing errors.
Diagnose your regime
Review the four para-hotel services: breakfast, cleaning during stay, linen supplied and renewed, physical guest welcome. Three out of four are enough to shift into para-hotel and change your VAT regime.
Choose your positioning
Classic furnished without VAT (civil activity, no recovery) or VAT-taxable para-hotel at 10 % (VAT collected, VAT deductible on purchases). The choice depends on your investment volume, the 36,800 EUR threshold, and your strategy.
Invoice accordingly
Issue compliant invoices: without VAT for classic furnished, VAT-inclusive at 10 % for para-hotel. Rebilled electricity follows the same rate as the main nightly rate. Our modules generate an automatic breakdown compatible with both regimes.
The legal framework for VAT in short-term furnished rentals
Three texts structure your regime: the CGI and the 2024 Finance Act.
Article 261 D 4° of the CGI
Exempts from VAT rentals of furnished housing for residential use, including furnished tourism rentals, unless three of the four para-hotel services are provided. This is the legal foundation for classic furnished rentals outside VAT scope.
Article 279 a of the CGI
Applies the 10 % reduced rate to accommodation services provided in classified tourist hotels and para-hotel establishments. Rebilled electricity included in the package or itemized on the invoice follows the same rate.
Micro-BIC vs real regime
Since the 2024 Finance Act, unclassified furnished micro-BIC is capped at 15,000 EUR in revenue with a 50 % deduction. Classified retains 77,700 EUR and 71 % deduction. Beyond that, the real regime is mandatory with full bookkeeping.
Four strengths of the VAT-taxable para-hotel regime
Switching to para-hotel isn't trivial, but opens tangible tax levers.
VAT recovery on purchases
Our metering modules, installation, furniture, renovation work, maintenance: all VAT paid on your investments becomes deductible. On a kit at 167 EUR incl. VAT, you recover over 27 EUR directly, and much more on a full renovation project.
Perceived professionalism
A VAT-inclusive invoice with an intra-community VAT number legitimizes your business with business travelers, premium platforms, and corporate accountants. The switch to para-hotel signals structured management, not a side rental.
Collected VAT offset
The 10 % VAT you charge your guests is largely offset by deductible VAT on your operating expenses: electricity, gas, internet, cleaning products, professional fees. The balance to pay the tax office remains manageable over a typical fiscal year.
Clean separation of activity
Switching to para-hotel forces you to structure your management: proper bookkeeping, CA3 or CA12 filings, clear distinction between private assets and professional activity. Rigor that protects in case of audit and prepares a potential business sale.
Real case: 2-bedroom host in Nice, 20,000 EUR in annual revenue
Classic furnished versus VAT-taxable para-hotel comparison, over twelve months of operation.
Classic furnished tourism rental
- • Nights billed excluding VAT, no VAT mention on guest invoices
- • Electricity rebilling (about 1,400 EUR yearly) included without VAT
- • Classified micro-BIC: 71 % deduction, taxation on only 5,800 EUR
0 EUR
VAT recovered on purchases
VAT-taxable para-hotel at 10 %
- • Nights billed VAT-inclusive at 10 %, about 1,820 EUR VAT collected
- • Electricity rebilled at 10 %, consistent with hotel regime
- • Real regime: deduction of actual expenses and hardware depreciation
+ 650 EUR
Annual net recoverable VAT
FAQ on VAT for electricity rebilling
The tax questions our hosts ask most often.
Do I have to charge VAT on electricity rebilled to my Airbnb tenant?
What is the VAT-free threshold in 2026?
Can I recover VAT on my equipment and meter purchases?
Is electricity rebilling really subject to VAT in para-hotel mode?
Classified vs unclassified furnished: what's the difference in 2026?
If I switch to para-hotel, do I have to redo all my Airbnb invoices?
Is there an interest in voluntarily opting for VAT?
What happens in a tax audit on the para-hotel qualification?
Discover also
ALUR law and Airbnb rentals
Understanding what the 2014 ALUR law imposes (or not) on your furnished tourism rental: provisions, recoverable charges, and energy rebilling.
Electricity rebilling law for short-term rentals
The complete 2026 legal framework for rebilling energy in furnished rentals: article 23-1, decree 2015-587, case law, and sanctions.
Understanding Airbnb electricity pricing
Plain-English breakdown of a utility bill for a short-term rental: subscription, kWh, taxes, TURPE, and honest guest passthrough.
Ready to frame the VAT on your electricity rebilling?
Diagnose your regime, choose the right tax positioning, and invoice cleanly to your short-term tenants.