"A provision in the 2025 budget that would have lowered the threshold below which micro-enterprises are exempt from VAT to €25,000 in annual turnover was suspended until 2026 following protests from small business owners. This provision was expected to generate around €780 million per year in tax revenue. Almost as soon as the budget was passed, that provision was 'paused' following an outcry from small business owners. It was later formally suspended until 2026."
"In November this year, parliamentarians rescinded the postponed 2025 provision entirely, meaning that meant thresholds at which businesses became responsible for collecting and passing on VAT payments remained at €37,500 for service providers and €85,000 for retail businesses, pending the implementation of new rules. Under the now-removed provision in the draft finance bill for 2026 a single VAT exemption threshold was set at €37,500 of annual turnover, with a lower threshold of €25,000 for services related to businesses in the construction industry."
Public Accounts Minister Amélie de Montchalin confirmed that proposed VAT threshold reductions will be removed from the new finance bill and will not be included in the final budget. A 2025 budget provision to lower the micro-enterprise VAT exemption to €25,000 was suspended and expected to raise about €780 million annually. Following protests and parliamentary pushback, that provision was paused and later rescinded, leaving current thresholds at €37,500 for service providers and €85,000 for retail businesses. A draft 2026 finance bill had proposed a single €37,500 threshold with a €25,000 carve-out for construction-related services.
Read at The Local France
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