France Raises VAT Exemption Thresholds for Micro-Entrepreneurs in 2025 (retroactively)

France’s Law No. 2025-1044, enacted on 3 November 2025, introduces a clearer and fairer tax framework for micro-entrepreneurs and small businesses, including new VAT exemptions and thresholds.

Key Highlights of the Law

Purpose: To establish a stable, equitable, and transparent fiscal framework for micro-entrepreneurs and small enterprises in France.

VAT Threshold Adjustments

• General VAT exemption thresholds updated:
  • Annual turnover limits:
    • Goods: €85,000 (previous year), €93,500 (current year)
    • Services: €37,500 (previous year), €41,250 (current year)
• Special VAT exemption for creative professionals:
  • Applies to:
    • Lawyers
    • Authors of intellectual works
    • Performing artists
• Turnover limits:
  • Eligible operations: €50,000 (previous year), €55,000 (current year)
  • Other operations: €35,000 (previous year), €38,500 (current year)
• Loss of exemption: If turnover exceeds these thresholds during the year, VAT exemption ends from the date of excess.

‍ Covered Operations for Creative Professionals

• Legal services by lawyers and court advocates
• Delivery and licensing of intellectual works (excluding architects)
• Exploitation of artists’ performance rights

Fiscal Impact and Compensation

• Effective date: Most provisions apply from 1 March 2025
• Revenue loss offset: Compensated by an additional excise tax on tobacco products

️ Legislative Path

• Adopted by the National Assembly and Senate
• Promulgated by President Emmanuel Macron
• Supported by multiple ministries including Economy, Justice, Culture, and SMEs

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