TL;DR: Since 1 January 2023, the turnover thresholds for the VAT franchise in the departments of Guadeloupe, Martinique and Réunion have been aligned with the standard thresholds applicable in mainland France. The increased thresholds previously in force in these territories are no longer valid for transactions where the taxable event occurs from this date.
Alignment with standard thresholds
The turnover thresholds for the VAT franchise in the DROM (Guadeloupe, Martinique, Réunion) are now identical to those in mainland France. This harmonisation applies to transactions where the taxable event occurs from 1 January 2023.
End of increased thresholds in the DROM
The increased thresholds that were specifically applicable in these departments have been abolished. They can no longer be used as a reference to determine eligibility for the VAT franchise.
Scope of application
The alignment only concerns the departments of Guadeloupe, Martinique and Réunion. Other outermost regions (e.g. French Guiana, Mayotte) are not mentioned in the available sources.
Practical consequences
To benefit from the VAT franchise for the year 2023 and subsequent years, taxpayers established in these DROM must compare their turnover with the updated standard thresholds, as for any taxpayer established in mainland France.
Comparison with mainland France
The standard thresholds are defined by Article 293 B of the CGI and updated every three years. The exact values are available in the official scale (BOI-BAREME-000036), but are not detailed here as they are not explicitly confirmed for the DROM in the provided sources.
Exclusions and limits
The previous increased thresholds no longer apply to transactions after 1 January 2023. No exceptions or derogations are mentioned in the sources for these departments.
Terminological clarifications
- VAT franchise: Scheme exempting from VAT payment subject to turnover conditions.
- Taxable event: The moment from which the tax becomes payable (e.g. delivery of goods, provision of a service).