France has enacted Law No. 2025-1044, published in the Official Gazette, which increases VAT exemption thresholds for micro-entrepreneurs and small businesses, effective March 1, 2026.
New threshold structure
The law establishes four distinct threshold categories based on business activity. For delivery of goods and services, including sales for consumption on premises and accommodation services, the threshold increases to €93,500 from the previous €85,000. Services and liberal activities, excluding lawyers, see their threshold raised to €41,250 from €37,500.
Regulated legal professions benefit from a threshold increase to €55,000 from €50,000, covering regulated legal activities, delivery of works, and transfer of royalties. Unregulated legal and other activities receive a smaller adjustment to €38,500 from €35,000.
Context
The threshold adjustments reflect France's ongoing effort to reduce administrative burden on small enterprises while maintaining VAT compliance frameworks. The differentiated approach by activity type continues France's sector-specific treatment of VAT exemptions, aligning thresholds with current economic conditions and inflation adjustments across different business categories.
