France enacted law No. 2025-1044 on November 3, 2025, raising VAT exemption turnover thresholds for micro-entrepreneurs and small businesses, with the new limits taking effect from March 1, 2025.
New Threshold Structure
The legislation establishes four distinct threshold categories based on business activity type. For deliveries of goods, services, on-site sales, and accommodation services, the threshold increases to €93,500 from the previous €85,000. Service activities and liberal professions (excluding lawyers) benefit from a threshold of €41,250, up from €37,500.
Regulated legal professions and activities involving works delivery and royalties transfers receive a €55,000 threshold, increased from €50,000. Unregulated legal professions and other activities are subject to a €38,500 limit, raised from €35,000.
Legislative Process
The legislation originated as Bill No. 1337 introduced by Deputy Paul Midy at the National Assembly on April 17, 2025. Following adoption by the National Assembly on June 2, 2025, the French Senate accepted the bill for consideration as Bill No. 26 on October 15, 2025. Senate rapporteur Jean-François Husson prepared the final report, and the Senate definitively adopted the text on October 23, 2025.
Context
The threshold increases represent France's ongoing effort to support small business growth and reduce administrative burdens on micro-enterprises. These adjustments align with broader European trends toward simplifying VAT compliance for smaller economic operators while maintaining revenue protection through activity-specific thresholds that reflect different risk profiles and business models.
