Just launched your micro-enterprise and wondering if you need to charge VAT? Here’s everything you need to know 👇
🧾 WHAT IS THE VAT STATUS FOR MICRO-ENTREPRENEURS?
By default, you benefit from the VAT exemption regime (called “franchise en base de TVA”).
This means:
You do not charge VAT to your clients
You cannot reclaim VAT on your business expenses
All your invoices and quotes must include the sentence:
“VAT not applicable, article 293 B of the French General Tax Code”
📊 WHEN DOES VAT BECOME MANDATORY?
You must start charging VAT if your annual revenue exceeds:
€85,000 for product sales or accommodation
€37,500 for services or liberal professions
⚠️ If you cross the threshold, you become liable for VAT starting from the first day of that month.
✅ BENEFITS OF VAT EXEMPTION
Simplified accounting: no VAT declarations required if you stay under the thresholds
More competitive pricing: you don’t add VAT on invoices
⚠️ DRAWBACKS
You cannot recover VAT on your expenses
If you exceed the threshold, you must act quickly: update your invoices and start filing VAT returns
🔄 WHAT TO DO IF YOU EXCEED THE THRESHOLD
Start charging VAT from the month of the threshold breach
Switch to the simplified VAT regime
File VAT declarations monthly or quarterly on impots.gouv.fr
You can now reclaim VAT on eligible business expenses
📌 CAN YOU OPT INTO VAT VOLUNTARILY?
Yes. Even if you haven’t reached the revenue thresholds, you can choose to charge VAT.
This can be a good idea if:
You have recurring business expenses
You work with professional clients who can reclaim VAT
This allows you to reclaim VAT on your own purchases too.
🎯 QUICK SUMMARY
You’re exempt from VAT if you stay under the thresholds
You become liable for VAT as soon as you exceed them
You can opt in voluntarily to benefit from VAT recovery