A simple turnover overrun can turn a tax advantage into a real headache. A lot of micro-entrepreneurs believe that they will be automatically notified when they become liable for the VAT. However, no alert is sent by the tax administration. A tracking error can thus lead to several years of regularization and a sometimes very high invoice.
The regime of micro-enterprise and the franchise based on VAT are often confused. However, these are two separate devices. An entrepreneur can maintain his micro-entrepreneur status while becoming liable for VAT if his turnover exceeds certain ceilings. You still need to know the applicable rules to avoid unpleasant surprises and monitor the evolution of your turnover very closely.
The administration will not notify you
In 2026the thresholds of the franchise based on VAT differ depending on the nature of the activity. For the activities of sale of goods andaccommodationTHE normal threshold is set at €85,000 of annual turnover and increased threshold has €93,500. For the servicesthese ceilings are respectively €37,500 And €41,250.
Concretely, as long as the turnover remains lower than normal thresholdthe micro-entrepreneur continues to benefit from the VAT exemption. If this threshold is crossed, it retains this advantage until December 31 of the current year and will start charging VAT from the following January 1. On the other hand, exceeding the increased threshold leads to immediate exit from the franchise: la VAT becomes due from the day of the excess.
This is precisely where the main trap lies. “There is no alert from the administration. Either you are accompanied by an accountant or a lawyer who alerts you, or you must monitor your turnover yourself. Some realize it three years later”explains Joris Leclerc, tax lawyer.
Let’s take the example of a consultant who carries out €38,000 of turnover in 2026. Having exceeded the normal threshold of €37,500he retains the benefit of the franchise until December 31, 2026 and will only start charging VAT from January 1, 2027. On the other hand, if he crosses €41,250 during the year, he immediately becomes liable for VAT. All services carried out from this date must be invoiced with tax.
The problem arises when the entrepreneur does not notice it. If the administration finds several years later that VAT should have been invoiced, it can claim amounts owed over the last three yearsto which late payment interest may be added and, depending on the situation, penalties. “The administration then considers that the declared turnover was inclusive of tax. You must therefore remit the corresponding VAT”specifies the lawyer.
The move to VAT is not necessarily bad news
Becoming liable for VAT does not only present administrative constraints. The entrepreneur can also recover VAT on part of its professional purchases and investments. An advantage which can be interesting when launching a business or when incurring significant expenses.
“At the start of an activity, you can quickly find yourself with a VAT credit because expenses are greater than turnover. This credit can be refunded or applied to the following declarations »underlines Joris Leclerc. Please note, however: only expenses incurred within the framework of professional activity and justified by compliant invoices entitle you to VAT recovery.
How to avoid the trap?
To avoid sometimes costly regularization, Joris Leclerc recommends regularly monitoring your turnover, particularly when it approaches the ceilings. He also advises against artificially creating multiple activities in order to stay below the thresholds. “The administration is not fooled. If the division is artificial, it can consider that it is a single activity”he warns.
Finally, when an error is noted, better to react quickly. “We must not bury our heads in the sand. If you realize that you should have been subject to VAT, it is preferable to spontaneously contact the tax authorities, file corrective declarations and, if necessary, request a schedule.concludes the tax lawyer.
