TLDR: The reduction of VAT franchise thresholds to €25,000 (previous year) and €27,500 (current year) is suspended until 31 December 2025. Until this date, the standard thresholds (€85,000 and €37,500 for the previous year; €93,500 and €41,250 for the current year) remain applicable. The change in the rules for exiting the regime (immediate effect upon exceeding the threshold) has been in force since 1 January 2025.
Suspension of the threshold reduction
Article 32 of Law No. 2025-127 of 14 February 2025 on the finance act for 2025 provided for a reduction in VAT franchise thresholds to €25,000 (national turnover of the previous year) and €27,500 (national turnover of the current year), with an intended effective date of 1 March 2025. However, this measure was suspended until 31 December 2025 by ministerial announcements on 30 April 2025.
Applicable thresholds in 2025
During the suspension period, the standard thresholds remain in force:
- €85,000 (total turnover) and €37,500 (service provision) for the previous year;
- €93,500 and €41,250 for the current year.
These thresholds apply to all activities, except for specific exceptions (lawyers, authors of intellectual works, performing artists).
Changes to the rules for exiting the regime
Article 82 of Law No. 2023-1322 of 29 December 2023 on the finance act for 2024 modified the conditions for exiting the franchise base. Since 1 January 2025, exit from the regime occurs from the day the threshold is exceeded, rather than from the first day of the following month. This rule applies independently of the suspension of the threshold reduction.
Practical consequences for businesses
Businesses must check their eligibility for the franchise base regime using the standard thresholds until 31 December 2025. If a threshold is exceeded, exit from the regime is immediate, with no deferral to the beginning of the following month.
Special cases and exceptions
The specific thresholds for lawyers, authors of intellectual works, and performing artists (€50,000 and €35,000 for the previous year; €55,000 and €38,500 for the current year) remain applicable in accordance with Article 293 B of the CGI.
Key dates summary
- 1 January 2025: Entry into force of the new rule for immediate exit from the regime.
- 1 March 2025: Originally planned date for the threshold reduction (suspended).
- 31 December 2025: End of the suspension of the threshold reduction.