Auto-entrepreneur: Will you be concerned by VAT changes from March 1?

From March 1, the VAT exemption thresholds will be widely revised downwards, forcing many entrepreneurs to go to the checkout. But some will have a little respite.

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Small relief For self-employed entrepreneurs who generate turnover below 27,500 euros. They can blow a little, until January 1, 2026, before going through the VAT box. The news fell this Monday, January 3: as of March 1, the VAT exemption thresholds will be drastically lowered, regardless of the sector of activity. Until now, the VAT franchise threshold has been set at 37,500 euros for craftsmen, liberal professions and service providers, and 85,000 euros for purchasing and accommodation. Now, all independent in micro-enterprise will be subject to A single threshold planed at 25,000 euros. A fiscal deal which risks weighing heavily on the finances of many self -employed, especially those who flirt with these new thresholds and who will therefore have to be particularly vigilant.

To see more clearly, here are the three possible scenarios to find out if you will be affected by this measure:

• Case 1 : Your turnover is less than 25,000 euros ? No change: you continue to invoice excluding tax and do not have a VAT to pay.
• Case 2 : Your recipes exceed 25,000 euros but are below 27,500 euros ? You then escape VAT … but not for long. From January 1ᵉʳ 2026, it will be necessary to apply it on all your invoices.
• Case 3 : Your turnover is greater than 27,500 euros ? Bad news: the subjugation is immediate. As soon as this threshold is crossed and from March 1, 2025, you must invoice and donate VAT to the tax administration, from the first additional euro collected.

It rumbles in self-employed

Imposed by the 2025 budget passage via Article 49.3 of the Constitution, this reform obviously does not pass unnoticed in small independents. Since the main advantage of the self-employed regime is precisely in this VAT exemption, which allows them to be more competitive in the face of companies subject to value added tax. By imposing these new thresholds on “”200,000 new entrepreneurs»» According to Bercy, the State reduces this size tax advantage and may push some to review part of their economic model. “Many are likely to see their profitability crumble … or to be forced toincrease their prices»»alert Jean-Baptiste Achard, founder of staff, a freelance recruitment platform.