TLDR: Article 82 of the Finance Act for 2024 amended the rules for leaving the VAT exemption scheme from 1 January 2025. Article 32 of the Finance Act for 2025 subsequently lowered the thresholds to €25,000 and €27,500 from 1 March 2025. The implementation of this reduction was suspended until 31 December 2025. For 2025, leaving the scheme takes place according to the thresholds and dates specified by the applicable administrative ruling.
Applicable legislative texts
Two articles of law structure the regime applicable in 2025:
- Article 82 of Law No. 2023-1322 of 29 December 2023 on the Finance Act for 2024 amended and simplified, from 1 January 2025, the conditions for leaving the VAT exemption scheme when the annual national turnover thresholds are exceeded.
- Article 32 of Law No. 2025-127 of 14 February 2025 on the Finance Act for 2025 lowered, from 1 March 2025, the thresholds to €25,000 for the turnover of the previous year and €27,500 for the turnover of the current year.
The implementation of the reduction provided for by Article 32 was suspended until 31 December 2025 following ministerial announcements made on 30 April 2025.
Article 293 B of the French Tax Code
Article 293 B of the French Tax Code constitutes the central provision governing the VAT exemption scheme. It concerns taxable persons established in France who carry out supplies of goods or supplies of services.
For activities falling under the general regime, the thresholds referred to in Article 293 B are as follows:
| Assessment year | Total national turnover | Supplies of services, excluding sales for consumption on the premises and accommodation | |---|---:|---:| | Previous year | €85,000 | €37,500 | | Current year | €93,500 | €41,250 |
Article 293 B also provides for specific thresholds for lawyers, lawyers before the Conseil d’État and the Court of Cassation, authors of intellectual works and performing artists.
Rules for leaving the scheme applicable in 2025
Since 1 January 2025, when the threshold for the current year is exceeded, the exemption ceases to apply to transactions carried out from the date on which the threshold is exceeded. Leaving the scheme therefore no longer takes effect on the first day of the month in which the threshold is exceeded.
For 2025:
- exceeding a threshold assessed for 2024 results in the loss of the benefit of the exemption from 1 January 2025;
- exceeding a threshold assessed for 2025 results in the loss of the benefit of the exemption from the day on which the threshold is exceeded.
Due to the suspension of the reduction, the thresholds used for exits taking place in 2025 are the ordinary-law thresholds and the tolerance thresholds applicable on 1 January 2025:
- for 2024 turnover: €85,000 and €37,500 depending on the nature of the transactions;
- for 2025 turnover: €93,500 and €41,250 depending on the nature of the transactions.
The thresholds specific to lawyers, authors of intellectual works and performing artists remain applicable to the categories concerned.
Scope of the suspension
The suspension concerns the implementation, until 31 December 2025, of the reduction provided for by Article 32 of the Finance Act for 2025. It does not call into question the amendment to the rules on the date of exit resulting from Article 82 of the Finance Act for 2024.
To determine your situation in 2025, you must therefore distinguish between:
- the text that amended the conditions for leaving the scheme from 1 January 2025;
- the text that provided for the reduction of the thresholds from 1 March 2025;
- the suspension of the implementation of this reduction until 31 December 2025;
- the applicable thresholds and exit dates according to the turnover year concerned.
The arrangements specified for 2025 replace those set out in BOI-RES-TVA-000198 published on 3 March 2025.