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Taxation
VAT-based exemption: the introduction of the single threshold suspended until 1 June
Publié le 27 février 2025 - Mise à jour le 28 février 2025 - Directorate for Legal and Administrative Information (Prime Minister)
The 2025 budget introduced a single VAT-based exemption threshold initially applicable to 1er March 2025. However, following consultations with professional federations, the Ministry of Economy has just suspended the application of this measure until 1er June 2025.
The introduction of the single threshold for exemption under suspended VAT
The VAT exemption system exempts companies from VAT on the supplies or sales they make. In order to benefit from it, it is necessary to respect turnover thresholds set according to the activity carried out.
The budget law replaces these thresholds with a single threshold whose application is currently suspended up to 1er June 2025, date set by the Ministry of Economy in its press release.
Thus, there is no need for a new VAT reporting approach for the companies concerned.
What is the amount of this threshold?
The single threshold for exemption from VAT is set at €25,000. The increased threshold is set at €27,500.
Who is involved?
The single threshold applies to all activities. The difference in thresholds depending on the activity carried out is therefore eliminated.
What consequences?
Since 1er January 2025, if the threshold is exceeded, VAT will be charged from the date of overrun.
Thus, the company that exceeds the threshold of 25,000 € at 1er June 2025 will be subject to VAT from that date.
For full information on the consequences of exceeding the exemption thresholds, please see the corresponding card.
What are the thresholds applicable since 1 January 2025?
Since 1er January 2025, the thresholds for the VAT exemption scheme are as follows:
Since 1er january 2025 | Threshold 2024 | |
Basic threshold for exemption under VAT | €85,000 | €91,900 |
Threshold increased | €93,500 | €101,000 |
Since 1er january 2025 | Threshold 2024 | |
Basic threshold for exemption under VAT | €37,500 | €36,800 |
Threshold increased | €41,250 | €39,100 |
Since 1er january 2025 | Threshold 2024 | |
Basic threshold for exemption under VAT | €50,000 | €47,700 |
Threshold increased | €55,000 | €58,600 |
Since 1er january 2025 | Threshold 2024 | |
Basic threshold for exemption under VAT | €35,000 | €19,600 |
Threshold increased | €38,500 | €23,700 |
Reminder
Since 1er January 2025, it is no longer possible to exceed the 2-year base threshold. A taxable person who exceeds this threshold becomes liable for VAT as of 1er January of the following year.
Extension of the exemption from VAT to intra-Community transactions
Since 1er January 2025, the VAT exemption is also applicable for transactions that the company carries out in one or more EU Member StatesEU (EU).
The company will benefit from the duty-free treatment applicable in the Member States concerned.
The conditions to be met are as follows:
- not to exceed €100,000 turnover in the EU in the previous year and in the current year;
- provide the French administration with prior notification of the intention to make use of the VAT exemption in one or more EU Member States, and other information (example: the individual identification number);
- meet the conditions for application of the VAT exemption scheme of the EU country or countries concerned.