Reassessment of thresholds

In order to be able to benefit from the VAT exemption scheme which exempts companies from the declaration and payment of VAT on supplies or sales made by them, the company must comply with turnover thresholds.

These thresholds have changed to 1^er January 2025:

Changes in the effects of breaching the basic threshold

Previously, the effects of breaching the VAT exemption thresholds were as follows:

• if the higher threshold was exceeded, VAT would be charged as from 1^er the day of the month in which the excess occurred;
• it was possible to exceed the basic threshold for up to 2 years.

Since 1^er january 2025, the rules are:

• if the higher threshold is exceeded, VAT will be charged from the date of overrun ;
• it is no longer possible to exceed the basic threshold over two years, and a taxable person who exceeds this threshold becomes liable for VAT as of 1^er January of the following year.

Extension of the exemption from VAT to intra-Community transactions

Since 1^er 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.