Fee splitting is an important tool for "liberal professionals" in France. These are self-employed professionals that provide certain specialised services, especially in the healthcare and legal industries. Fee splitting is a formal way of splitting payments between two professionals who worked on the same project or for the same clients. It helps track cash flow, offers protection in tax audits, and is required for correct taxation.

If fee splitting is poorly documented, it can be costly to professionals and business owners who pay out or receive fee splits. Payers of fee splits can have their deductions rejected, and those who receive fee splits might have to pay tax adjustments for undeclared income. Compliance is even more important in 2026 with the rollout of electronic invoicing and cross-checking of payments via the declarations of fees or commissions (DAS2) form.

In this article, we explain fee splitting, including who uses it, how to calculate amounts billed, and how to record it in your accounts.

Key takeaways

• Fee splitting involves professionals collecting payments and paying out part of them to colleagues or other professionals who perform complementary services. This typically occurs when one professional replaces another or when colleagues work together on a project.
  
• Fee splitting invoices formalise payouts between two professionals. They apply primarily to professionals in the healthcare, legal, finance, accounting, and consulting sectors. Invoices must include the typical legal notices, as well as base amounts billed, rates applied, and amounts paid.
  
• Fee splits are calculated by multiplying the amount collected by the split percentage stipulated in the contract. This rate varies widely depending on the industry.
  
• Fee splitting is recorded in accounts differently based on whether the party is paying out or receiving the split. If paying, the amount is applied against revenue. If receiving, it must be recorded as income. If the total exceeds €2,400 per year and per recipient, it must be reported on the declarations of fees and commissions (DAS2) form. Failure to file can result in fines.
  

What is fee splitting?

Fee splitting – known in French as "rétrocession d'honoraires" or simply "rétrocession" – involves a professional collecting a payment and paying out part of it to a colleague or other professional who performed a complementary service. Fee splitting typically occurs when one professional replaces another or when professionals work on a project together. The professional receiving the payout must record it as income.

The payout process is typically the same in all industries. The party that collects the payment pays out a portion to the other party who contributed to the project. However, the parties can vary. Here are some examples:

• Replacements: In the healthcare industry, the primary professional collects payment and pays out a portion to the replacement professional. The payout percentage is contractually agreed upon and is called the "split rate."
  
• Project sharing: In the legal profession, the law firm splits fees with the lawyer who handled the case.
  

In both cases, payouts are not considered wages. The professionals remain independent, and each declare their share as part of their income. Payouts are deducted from the payer's income and added to the payee's income.

Fee splitting is typically based on a written replacement or collaboration agreement that stipulates the split rate and applicable time period. In some sectors – such as medical and legal professions – professional ethics require written agreements. In others, agreements are strongly recommended but not required.

What is the difference between fee splitting and collaboration fees?

Fee splitting involves a professional paying out part of their payment for a client's project to a colleague who also worked on the project. On the other hand, collaboration fees compensate self-employed practitioners – who work independently and bill their own patients – for the use of office space and equipment.

Under independent collaboration agreements, collaborators operate under their own names, have their own patients or clients, and bill their patients or clients directly. Collaborators rent office space or equipment from the primary provider and, in exchange, pay fees that are often stated as percentages of revenue. Collaboration fees are compensation for the use of resources, not a percentage of the project fee paid by the primary professional's client.

What is the difference between fee splitting and subcontracting?

In fee splitting, colleagues in the same profession share the fee. In subcontracting, services are performed by third parties. Subcontracting fees are typically subject to value-added tax (VAT), while fee splitting is deducted from income and follows the profession's VAT regime. The healthcare industry is exempt from VAT.

What is the difference between fee splitting and disbursements?

Disbursements are expenses advanced by professionals on their clients' behalf. They are then reimbursed in full, without VAT or profit margins. Conversely, fee splitting is when a portion of a payment is paid out to a fellow professional who reports the payout as income.

What are fee splitting invoices?

Fee splitting invoices are accounting documents that formalise fee payouts between two professionals. The professionals or businesses that receive split fees issue the invoices to the parties that pay the fees. In addition to the information required on traditional invoices, fee splitting invoices must include the base payment collected, contractual split rate, and amount paid out.

As a written record of the payment, the fee splitting invoice is necessary because it safeguards the relationships between colleagues. It also establishes the basis for calculations, rates, and amounts paid out, which can prevent disputes over the distribution of revenue. It is important to retain this document, as it serves as proof of the distribution in the event of an audit.

Who uses fee splitting invoices?

Fee splitting invoices are used in professions where fees and clients are commonly shared. They are most popular in the healthcare, legal, accounting, finance, and consulting industries when payouts are required for replacements or shared projects.

Here are the primary professions that use fee splitting invoices:

• Healthcare: Doctors, nurses, physiotherapists, midwives, speech therapists, and dentists frequently split fees with their replacements.
  
• Legal: Many lawyers practice "liberal collaboration", where a law firm pays split fees to its attorneys. Then, they declare it as income. Civil law notaries and judicial officers also use fee splitting when sharing cases.
  
• Accounting and finance: Accountants and auditors frequently collaborate on engagements and pay out fees accordingly.
  
• Consulting and knowledge professions: Freelance consultants, instructors, architects, and translators might split fees when sharing projects.
  

Note: Business referral and joint listing fees between estate agencies, salespeople, or brokers are different from fee splitting. Although they are similar, they have different tax implications. They are commissions subject to specific accounting rules and differ from fee splitting, which applies only to liberal professions.

How to calculate fee splits

Fee split amounts to be invoiced are equal to the total fee collected for the period multiplied by the split rate stated in the contract. In healthcare professions, the rate represents the amount paid out to the replacement party. The rate varies by speciality, ranging from about 50% for oral surgeons to around 90% for speech therapists.

Here is the formula for calculating fee splits:

Fee Split = Fee Collected x Split Rate

Example of fee splitting

The primary provider is a physiotherapist. While the provider is on leave, the practice collects €12,600 for services performed by their replacement. The contract stipulates a split rate of 70%.

€12,600 x 70% = €8,820

Therefore, the primary physiotherapist pays out €8,820 to their replacement and keeps the remaining €3,780 to cover their own expenses.

Fee split rates

Parties typically negotiate the split rate ahead of time. The rate depends on the practice's expenses. The more the primary provider pays for rent and equipment, the more they retain, and the lower the split rate.

Although the law does not stipulate specific split rates, here are some typical rates for the healthcare sector. These ranges represent percentages paid out to replacements but can vary:

• Family doctors: The typical rate can be 70% – 80%. This can sometimes increase up to 100% in underserved areas or for on-call duty.
  
• Oral surgeons: This rate can be 50%–60% because practice expenses are generally higher.
  
• Physiotherapists: Split rates for these professionals can typically be around 70%.
  
• Speech therapists: Replacements in this field often receive about 80%–90% of fees.
  
• Self-employed nurses: The split rate is reversed for nurses. Replacements keep most of the fee. The primary provider receives a practice fee of only about 5% – 15%.
  

Outside of the healthcare sector, the formula varies. For example, lawyers typically pay out fee splits via fixed monthly amounts stipulated by contracts, not a percentage of fees collected.

What information is required on fee splitting invoices?

Fee splitting invoices require the same legal information as any invoice, along with details specific to fee splitting. This includes both parties' identities, invoice numbers and dates, time periods, base fees, rates applied, amounts excluding tax, VAT regimes, and amounts including tax. Non-compliance is punishable by law.

Here is the information required on fee splitting invoices:

• Clear title: The document header must state "Fee splitting invoice" ("Facture de rétrocession d'honoraires") to eliminate ambiguity.
  
• Full identity of the parties: The invoice must indicate the issuer and recipient names or corporate names, addresses, establishment directory identification system (SIRET) numbers, legal forms, and intra-community VAT numbers, if any.
  
• Invoice number and date: The invoice must include a unique number from a continuous, chronological sequence and an issuance date.
  
• Service period and description: The invoice needs to describe the replacement or collaboration, dates covered, and contract number for the payout.
  
• Calculation details: These need to include the base fee (i.e., the total fees collected) and the contractual split rate applied.
  
• Amounts and VAT: Fee splitting invoices must include the amount excluding tax, VAT details (e.g., rate and amount) or exemption notice, and total including tax.
  
• Payment terms: Invoices must include the applicable due dates, payment methods, and late payment penalties.
  

Fee splitting invoices sent under electronic invoicing rules must contain additional information, including the client's Business Directory Identification System (SIREN) number, a description of the service, and the option to pay VAT on debit, if applicable.

Note: Missing and inaccurate notices are punishable by a fine of €15 per missing notice, per invoice. Fines are capped at one-quarter of the invoice total. In addition to fines, non-compliant invoices cannot be used to prove payouts. This can cause authorities to reject the deduction and require a tax adjustment for both the payer and payee.

What is the VAT rate for fee splits?

Fee splitting invoices follow the industry's VAT regime. Medical and paramedical professions are exempt from VAT, while lawyers, consultants, and veterinarians apply the typical 20% rate if they are subject to VAT.

Physicians, nurses, physiotherapists, and other healthcare professionals are exempt from VAT. Fee splits paid out to replacements are invoiced without VAT but must include the notice: "VAT not applicable, Article 261-4-1 of the General Tax Code (CGI)" ("TVA non applicable, art. 261-4-1° du CGI"). The exception is veterinarians, who remain subject to the 20% rate.

For lawyers, consultants, and auditors subject to VAT, fee splitting requires the typical VAT rate, which is reflected on invoices. Professionals under the basic VAT exemption regime invoice without VAT. The invoice must include the notice: "VAT not applicable, Article 293 B of the CGI" ("TVA non applicable, art. 293 B du CGI").

Note: Rent and equipment fees are invoiced separately and are considered taxable rentals. They are different from fee splitting.

Does electronic invoicing affect fee splitting invoices?

Electronic invoicing's impact on fee splitting invoices depends on the VAT regime. VAT-exempt fee splits – such as in healthcare professions – are not subject to electronic invoicing requirements because they are exempt from VAT under Articles 261 – 261 E of the CGI.

This means healthcare professionals do not need to issue invoices via approved platforms (APs). Traditional invoices will suffice. On the other hand, taxable fee splits – such as between lawyers or consultants – are subject to electronic invoicing requirements.

Furthermore, beginning 1 September 2026, all businesses subject to VAT must be able to receive electronic invoices via APs. This includes invoices from suppliers to healthcare professionals.

For taxable fee splits, large and intermediate-sized enterprises must be able to issue electronic invoices beginning in 2026. This requirement begins 1 September 2027 for small and medium-sized enterprises (SMEs), very small enterprises (VSEs), and self-employed persons.

Example of a fee splitting invoice

Here is an example of a fee splitting invoice established by a replacement and issued to the primary provider of a practice. It includes all required information – from base fees to amount paid out – and illustrates the healthcare sector VAT exemption.

How do professionals record fee splits?

Parties paying out and receiving fee splits record the split differently. Payers debit it to account 709610 for "fee splits", which reduces their revenue. Payees include it as income in account 706 for "services rendered".

Payers must report payouts over €2,400 per year and per recipient on a DAS2 fee declaration form. The form is an annual statement of fees and commissions paid out to third parties. It allows the tax office to cross-check the amount the payer paid out with the income declared by the recipient. Missing DAS2 filings can be costly – fines of 50% of the undeclared amount – unless it is the first violation and back taxes are paid voluntarily or at the behest of the authorities.

How Stripe Invoicing can help

Stripe Invoicing simplifies your accounts receivable (AR) process – from invoice creation to payment collection. Whether you're managing one-time or recurring billing, Stripe helps businesses get paid faster and streamline operations:

• Automate accounts receivable: Easily create, customise and send professional invoices – no coding required. Stripe automatically tracks invoice status, sends payment reminders and processes refunds, helping you stay on top of your cash flow.

• Accelerate cash flow: Reduce days sales outstanding (DSO) and get paid faster with integrated global payments, automatic reminders and AI-powered dunning tools that help you recover more revenue.

• Enhance the customer experience: Deliver a modern payment experience with support for 25+ languages, 135+ currencies and 100+ payment methods. Invoices are easy to access and pay through a self-serve customer portal.

• Reduce back-office workload: Generate invoices in minutes and reduce time spent on collections through automatic reminders and a Stripe-hosted invoice payment page.

• Integrate with your existing systems: Stripe Invoicing integrates with popular accounting and enterprise resource planning (ERP) software, helping you keep systems in sync and reduce manual data entry.

Learn more about how Stripe can simplify your accounts receivable process or get started today.

FAQs about fee splitting invoices in France