France has updated its VAT exemption thresholds for micro-enterprises, allowing more small businesses to remain outside the VAT system. The new rules will reduce administrative burdens and help smaller companies stay competitive.
What Has Changed?
From 1 March 2026, the revised turnover thresholds for the VAT exemption (“franchise en base de TVA”) will apply as follows:
- Goods, accommodation & on-site consumption: €93,500 (up from €85,000)
- General services: €41,250 (up from €37,500)
- Regulated legal professions: €55,000 (up from €50,000)
- Other professional services: €38,500 (up from €35,000)
These adjustments mark a reversal of earlier proposals that would have cut the exemption thresholds. The law reinstating these higher thresholds was published under Law No. 2025-1044.
Why Does It Matter for Your Business?
- Many micro-enterprises and start-ups in France can continue operating without charging VAT until they exceed the new thresholds—saving on administrative time and cost.
- If you provide services in France or supply goods to French consumers, knowing your position relative to these thresholds is crucial to determine if you must register for VAT or not.
- Staying under the exemption means you do not charge VAT to your customers—but you also cannot reclaim input VAT.
- If you exceed the threshold, you’ll need to register for VAT, switch invoicing practices, adjust pricing, and potentially absorb creditable VAT.
Key Action Steps for Businesses
- Forecast your turnover for the current year and compare to the new thresholds to assess liability risk.
- Review the nature of your business activity (goods vs services vs regulated professions) to apply the appropriate threshold.
- Monitor earnings closely—exceeding the threshold triggers immediate VAT obligations from the point of realisation.
- Prepare your systems for VAT registration if you anticipate crossing the threshold: update invoicing, bookkeeping, and compliance workflows.
If you’re unsure how the new French VAT thresholds affect your business, Safari Star can help you evaluate your position, navigate registration requirements, and keep your VAT compliance up to date.