Accounting glossary for freelancers

The accounting and tax terms you meet every day, explained simply for tradespeople, freelancers and small businesses.

Expense report

Accounting document listing the business expenses incurred by a freelancer or an employee in the course of their work. It must show the date, the nature of the expense, the gross amount and the VAT. For a freelancer, it justifies deductible costs to the accountant and the tax authorities.

Accounting supporting document

Supporting document (till receipt, invoice, payment slip) proving that an expense actually took place. To be valid for the French tax authorities it must show the date, the supplier name, the net amount, the VAT rate and the VAT amount. A digital copy carries the same weight as a paper original when it meets the conditions of the 22 March 2017 order.

Deductible VAT

Value Added Tax paid on business purchases that a VAT-registered business can reclaim from the state. VAT is only deductible when the purchase relates to the business and the original supporting document is kept. Sole traders under the VAT exemption scheme cannot reclaim VAT.

Mileage allowance

Allowance calculated from the French tax authority's official mileage scale, letting a freelancer or an employee deduct the business use of their personal vehicle. The 2026 scale runs from €0.529/km (3 CV) to €0.697/km (7 CV and above) for the first 5,000 km. A 20% uplift applies to fully electric vehicles.

Mileage scale

Table published each year by the French tax authority setting business travel reimbursement rates according to the vehicle's fiscal power rating and the distance driven. It covers fuel, wear and tear, repairs and insurance. Tolls and parking are deducted on top, with receipts.

URSSAF

Union de Recouvrement des cotisations de Sécurité Sociale et d'Allocations Familiales: the French body that collects social security contributions from self-employed workers and employers. URSSAF can run documentary audits to check that declared contributions are correct.

VAT reverse charge

Mechanism whereby a VAT-registered buyer must self-declare the VAT on a service or good purchased from a foreign supplier (EU or non-EU). It typically applies to foreign SaaS subscriptions (Adobe, Google, GitHub, ChatGPT Plus). The buyer both owes and deducts the VAT.

VAT exemption scheme

Tax regime letting small businesses whose turnover stays below certain thresholds avoid charging VAT to their clients. In exchange, they cannot deduct VAT on their purchases. 2024 thresholds: €36,800 for services, €91,900 for goods.

Thermal paper

The paper used to print till receipts, toll slips and card terminal receipts. Thermal paper fades under heat, light and humidity — sometimes within weeks. Digitising thermal receipts within 24 to 48 hours is recommended to preserve their evidential value.

Accounting CSV export

A CSV (Comma-Separated Values) file listing the month's expenses with the columns an accounting firm expects: date, supplier, gross amount, net amount, VAT, category, expense type and client folder. It imports directly into accounting software (Sage, Cegid, QuickBooks and others) with no manual re-entry.