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Taxation
Exemption from VAT: abolition of the single exemption threshold of €25,000
Publié le 05 novembre 2025 - Entreprendre Public Service / Legal and Administrative Information Directorate (Prime Minister)
The Finance Law for 2025 had established a single VAT-based exemption threshold initially applicable to 1er March 2025. This measure, suspended following consultations with professional federations, has just been abolished by the law of November 3, 2025.
Completion of the single VAT-based exemption threshold project
The VAT exemption system exempts companies from VAT on the services or sales they make. In order to benefit from it, it is necessary to comply with turnover thresholds set according to the activity carried out.
The 2025 budget law set a single threshold of €25,000 (threshold increased by €27,500).
In order to protect micro-companies, the law of 3 November 2025 permanently deletes this measure and maintains the application of the existing VAT exemption thresholds.
What are the VAT exemption thresholds?
Since 1er January 2025, the thresholds applicable to the VAT exemption scheme are as follows:
Since 1er January 2025 | 2024 threshold | |
Basic threshold of the exemption on a VAT basis | €85,000 | €91,900 |
Increased threshold | €93,500 | €101,000 |
Since 1er January 2025 | 2024 threshold | |
Basic threshold of the exemption on a VAT basis | €37,500 | €36,800 |
Increased threshold | €41,250 | €39,100 |
Since 1er January 2025 | 2024 threshold | |
Basic threshold of the exemption on a VAT basis | €50,000 | €47,700 |
Increased threshold | €55,000 | €58,600 |
Since 1er January 2025 | 2024 threshold | |
Basic threshold of the exemption on a VAT basis | €35,000 | €19,600 |
Increased threshold | €38,500 | €23,700 |
Reminder
Since 1er In January 2025, it is no longer possible to exceed the 2-year baseline. A taxable person who exceeds this threshold becomes liable for VAT from 1er January of the following year.
Extension of the exemption from VAT to intra-Community transactions
Since 1er In January 2025, the VAT exemption is also applicable for transactions that the company carries out in one or more EU Member StatesEuropean Union.
The company will benefit from the applicable exemption regime of the Member State concerned.
The conditions to be met are as follows:
- do not exceed €100,000 turnover in the EU in the previous year and in the current year;
- provide the French authorities with prior notification of the intention to make use of the exemption on the basis of VAT in one or more EU Member States and the information specified in Article 293 B ter of the General Tax Code (example: the individual identification number);
- fulfill the conditions for application of the VAT exemption scheme of the Member State(s) concerned.