The Tax minute

Every week, the Tax minute with our partner Aurélie Maudhuy !

‍

• VAT-based franchise: suspension of the reform until the end of 2025

In a press release dated 30 April 2025, the Ministry of the Economy decided to extend the suspension of the VAT franchise reform, which was supposed to end on 31 May 2025, until the end of 2025. A new debate on this reform will take place as part of the development of the draft finance law for 2026.

As a reminder, the VAT-based franchise regime exempt businesses from VAT on the supplies of goods or services they provide. To benefit from it, it is necessary to respect turnover thresholds set according to the activity carried out.

The finance law for 2025 introduced a single exemption threshold based on VAT, initially applicable to 1.^Er March 2025. However, although due to the evolution of European rules since the 1^Er January 2025, this measure caused great concern among professionals and in particular among auto-entrepreneurs.

Consequently, for businesses that practice franchise on the basis of VAT, no new VAT declaration procedure has to be carried out until further notice.

Mainly, companies whose turnover in 2024 did not exceed 85,000€ (for the activity of supplying goods, catering or accommodation services) or 37,500€ (for other activities in the provision of services) can benefit from this franchise throughout the year 2025 as long as their 2025 turnover does not exceed, respectively, 93,500€ or 41,250€. If these increased limits are exceeded during 2025, they become liable for VAT for transactions occurring as of the date they were exceeded.

So follow up, appointments made for the end of the year!