The French Parliament adopted a law published in the Official Journal on November 4, 2025, under number 2025-1044, setting the VAT exemption thresholds for micro-enterprises. This law is applicable retroactively to March 1, 2025.
The law thus definitively repeals the reduction introduced by the 2025 Finance Act, which the government had suspended in April 2025.
As a reminder, Article 32 of the aforementioned 2025 Finance Act, published in the Official Journal on February 15, 2025, under law number 2025-127, initially provided for a reduction in the VAT exemption threshold for micro-enterprises to €25,000 (and €27,500 for the increased threshold) for both goods and services, applicable from March 1, 2025. This measure was the subject of much controversy, particularly among the union of entrepreneurs in France, who pointed out the risk of closure for many establishments that currently survive on the basis of these thresholds.
Following public consultations, the government therefore suspended the reduction in the VAT exemption threshold for micro-enterprises until 2026.
As a result, Parliament has reinstated the previously applicable thresholds. These thresholds are as follows:
| Année d’évaluation | Fourniture de biens ou à la prestation de services d'hébergement et de restauration sur place | Services autres que la fourniture d'hébergement et de restauration sur place | Services rendus par des avocats, des écrivains et des artistes agissant dans le cadre de leur activité professionnelle | Services rendus par les avocats, les écrivains et les artistes au titre de services qui ne font pas partie de leur statut professionnel |
|---|---|---|---|---|
| N-1 (last year) | 85 000 € | 37 500 € | 50 000 € | 35 000 € |
| N (current year) | 93 500 € | 41 250 € | 55 000 € | 38 500 € |
However, Article 25 of the 2026 Finance Bill, currently under discussion in Parliament, proposes a simplification and reduction of the thresholds mentioned, applicable as follows :
| Année d’évaluation | Chiffre d’affaires national total | Chiffre d’affaires national afférent aux prestations de services de travaux immobiliers |
|---|---|---|
| N-1 (last year) | 37 500 € | 25 000 € |
| N (current year) | 41 250 € | 27 500 € |
The finance bill has not yet been adopted, so these thresholds may change.
Please note : companies not established in France with a turnover in the European Union (EU) of less than €100,000 may also benefit from these thresholds. Conversely, micro-enterprises established in France with a turnover of less than €100,000 in the EU may also benefit from the national exemption thresholds of other Member States, thus avoiding VAT registration in other EU Member States. These simplifications are not always advantageous, and only a case-by-case analysis based on your activities would determine the profitability of applying such a measure.
MAVAT’s experts can assist you with these analyses.