The 2025 budget will force more small businesses to pay VAT, worries professionals

The 2025 budget will force more small businesses to pay VAT, worries professionals


A modification would allow the government to lower the VAT exemption threshold for small businesses, to the chagrin of professionals.

The draft state budget plans to lower the VAT exemption threshold for small businesses to 25,000 euros in annual turnover, which arouses the concern of professionals who fear “A loss of margin” and a “Accounting complexification”.

So far, this threshold was set at 37,500 euros in annual turnover for most of the entrepreneurs. The finance bill for 2025, on which the Bayrou government engaged its responsibility on Monday, sets a new single threshold of VAT exemption, established at 25,000 euros. This would allow the government, which hopes to bring the public deficit to 5.4% in 2025 against 6.1% last year, to obtain additional revenues by expanding the plate of subject to companies.

According to Grégoire Leclercq, president of the National Federation of Self-Entrepreneurs (FNAE), this single threshold will lead «250.000 auto-entrepreneurs» Additional to have to collect value added tax. The president of the FNAE fears that these self-employed entrepreneurs will be forced to “Invoice 20% more expensive their customers for the same service”in order to pass the VAT. “They will then have to collect this VAT on their bank account and transfer it in a semi -annual way to the French State, which corresponds neither more nor less to a huge accounting complexification”anticipates Grégoire Leclercq.

A measure that will encourage “fraud”?

For part of the self-employed entrepreneurs, this measure will constitute “A loss of margin”he deplores, assuring that the latter “Will not be able to impose 20% on their customers”. The president of the FNAE predicts that this measure will encourage self-entrepreneurs “To fraud” : “People will simply underline their turnover to stop at 25,000 euros”.

François Bayrou engaged on Monday the responsibility of the government, via article 49.3 of the Constitution, on the draft state budget 2025, in order to have it adopted without vote. This text comes from a compromise between deputies and senators during a joint joint committee (CMP) which was held last week.

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