What are the consequences for a micro-entrepreneur who exceeds the turnover thresholds?
Verified 01 January 2023 - Directorate for Legal and Administrative Information (Prime Minister), Ministry of Economy
The status of micro-entrepreneur applies as long as your annual turnover (actually cashed in during the calendar year) does not exceed the thresholds of the micro-company tax system.
Turnover thresholds HT: titleContent the micro-company regime depends on the activity you are carrying out.
In the first year of operation, the CA: titleContent VAT taken into account to establish an overrun will be calculated according to the number of days your company exists.
For example, if the company has been in existence since January 31, 2022, then there will be 334 days until December 31, 2022. The threshold not to be exceeded is calculated as follows: (€176,200 x 334) / 365 =€161,235.
This adjustment is called pro rata temporis of turnover excluding taxes in year N (1era year of existence). The turnover excluding tax is used as a reference year for the following years.
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Commercial and accommodation activity
Income threshold 2022 (reported in 2023)
You are subject to the micro-company regime if your turnover does not exceed €176,200.
If you exceed that threshold, you go to the simplified real tax system.
2023 income thresholds (reported in 2024)
You are subject to the micro-company regime if your turnover does not exceed €188,700.
If you exceed that threshold, you go to the simplified real tax system.
Activity of service provision (including rural lodges not classified as tourist furniture)
Income threshold 2022 (reported in 2023)
You are subject to the micro-company regime if your turnover does not exceed €72,600.
If you exceed that threshold, you go to the simplified real tax system.
2023 income thresholds (reported in 2024)
You are subject to the micro-company regime if your turnover does not exceed €77,700.
If you exceed that threshold, you go to the simplified real tax system.
Liberal activity
Income threshold 2022 (reported in 2023)
You are subject to the micro-company regime if your turnover does not exceed €72,600.
If you exceed that threshold, you go to the simplified real tax system.
2023 income thresholds (reported in 2024)
You are subject to the micro-company regime if your turnover does not exceed €77,700.
If you exceed that threshold, you go to the simplified real tax system.
At the time of creation on your company, you are automatically subject to the micro-company regime during the first 2 years of your existence.
If you want to be subject to the effective tax regime, you must opt for to benefit from this plan when creating your company. This option should be taken when you first report results.
If you exceed the turnover thresholds of the micro-company scheme for 2 consecutive years, you switch to the simplified real tax scheme. This change of regime takes place on 1er January of the year following the 2nde the year you exceeded the threshold.
If you exceed the micro-company thresholds for only one year, you remain subject to the micro-company regime.
Example :
You create your business company on May 8, 2023 and earn more than €122,526 the first year.
If you exceed the €188,700 in 2024, then you'll get out of the micro-company regime and you'll be subject to the actual tax regime as of the 1er January 2025.
However, if you are below the threshold in 2024, even if you exceeded the threshold in 2023, you will continue to benefit from the micro-company regime in 2025.
When you have exceeded the threshold of turnover excluding tax of the micro-company individual business regime (for 2 consecutive years), then you switch to the social and fiscal regime applicable to a
- Taxation on simplified real profit tax system (commercial, craft or industrial activity) or controlled declaration (liberal activity) from 1er January following the year of the exceedance
- Social security system for self-employed persons, from 1er January following the year of exceedance
FYI
The micro-social scheme shall apply until 31 December of the year in which the turnover threshold was exceeded.
Who can help me?
Find who can answer your questions in your region
- General Tax Code: Article 50-0Tax treatment of micro-companies
- General Tax Code: Article 102bSpecial arrangement for NLCs (micro NBCs)
- General Tax Code: Articles 293B to 293GVAT exemption
- Social Security Code: Articles L613-7 to L613-10Micro-social scheme
- Bofip-Taxes n°BOI-BIC-DECLA-10-40-30 relating to the withdrawal from the scheme of the final lump sum payment