Millions of freelancers and independent people of the acrance are sweating in the news about the possible decrease in VAT thresholds as a June 1 deadline in a consultation process.
In February, the French Parliament approved the delayed 2025 budget, which included creating a single VAT threshold for all companies of € 25,000, which would have brought with many Micro entrepreneurs To pay VAT for the first time.
Read also explained: What does the new France budget mean for you?
According to current rules, anyone registered as micro-understanding The benefits of a simplified commercial regime, as well as an exemption from barrel in profits below € 37,500 per year for those who sell services, or € 85,000 a year for those who sell products.
A few hours after the budget was approved in February, it was announced that The barrel reform had the ‘pause’ leg To allow time to consult, following a reaction from the community of small businesses. It was later confirmed that the pause would last until June 1.
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A ‘Flash’ mission of the Senate was launched after a request against the proposal obtained more than 100,000 signatures, concluded with a plea on April 9 to abandon the plans completely.
In their report, senators point out a “lack of consultation” with interested professionals before the approval of the law. “The conditions for acceptability and operational implementation [of the reform] They are not with, “the Finance Committee believes.
In addition, they estimate that the reform would have a “small” budget yield. Dear for the year 2025 to approximately 400 million euros, including 200 million euros for the state budget, this yield would finally amount to € 150 million, including € 75 million for the State, after the pause ‘.
Duration The questions about the government before, the Minister of Economy, Eric Lombard, suggested changes in the original proposal, which affected the private construction industry.
He said: “We are looking to present a balanced reform, taking into account certain sectors, such as construction, for which a threshold or € 25,000 is proposed. This reform presented a duration in a discussion in Parliament, but it was not considered admissible. Find this commitment to Parliament.”
Fédération Française du Bâtiment (FFB) construction association has come out in favor of Lombard’s proposal. “This barrel threshold frame should limit the unequal treatment that the micro-entrepreneurs enjoy, to the detriment of the sunk of thousands of buildings of buildings that operate in the same markets, without VAT exemption.”
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The Federation also believes that the qualifications and guarantees enjoyed by merchants must be protected as “in the interest of consumers.”
There are about 2.5 million registered micro-understanding (Formally known as car entrepreneurs) in France.
Those registered ashes micro-understanding They include independent workers (such as journalists, translators and tutors), unique merchants (including electricians or plumbers) or any person who executes a small company such as a store or Gîte – The State is only available for people who earn under a certain amount.
Read too How much can you win as a French micro-understanding?
It is believed that between 200,000 and 250,000 microentrepreneurs would be affected by the reduction of barrel thresholds, which would come to a rate or 20 percent.
As part of the pause consultation, “Professional and Parliamentary Federations [have been] Able to express their concerns, expectations and suggestions. “
“This consultation, now completed, brought together more than 50 professional federations. All the federations that requested it were heard,” the Bercy Ministry of Finance sedated in a press release.
Meanwhile, former prime minister Gabriel Attal led the calls to leave VAT reforms.
In an open letter, signed by 100 macronist politicians, including several former ministers, Attal wrote: “This measure would be destroying activity and wealth in our country … almost half of o [affected micro-entrepreneurs] They are under 30, they are rich or privileged.
“The risk is not only that the French will pay taxes, but also that they create less businesses. It is a risk for our entrepreneurs, a risk for our economic fabric, a risk to the purchasing power of the French.”
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The president of the Fédération Nationale des Auto-Inreneurs described the decrease in the VAT threshold “a form of extortion” that reflected, “a very poor understanding of the economic fabric of precarious workers who gain € 2,500 to € 2,000 net net.”
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Grégoire Leclercq said: “In most cases, [micro-entrepreneurs] They cannot approve this 20 percent increase [in costs] To its customers. “
He asked France to follow the example of Italy and established the much higher unique threshold, € 85,000 for services and sales.
Numerous protests against planned reforms have tasks. According to the unions, about 20,000 micro-entrepreneurs, to the streets on Tuesday, March 25, in 15 cities in France, included in France, Montpellier, Tours, Nantes, Lyon, Toulouse, Marseille and Paris.
One told Franceinfo: “I can’t ask my client to pay more, if I have to pay you from my own pocket from € 25,000, I will close [my business]. “
Another said: “Without VAT, I manage to earn more or less the minimum wage, or even a little more in a few months, since my salary varies.
“If the barrel reform is approved, I will end up praying € 1,000 net per month. I do not see the point of doing a job that I enjoy if I cannot make a living.”
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However, there is less consensus among commercial associations. While some organizations have indicated that micro-understanding They represent that they cannot easily pass on the client boat, others are neutral or thin in favor of the reform because we say: level the field between micro-understanding and other commercial regimes.
Some federations have suggested possible alternative routes, or have requested the implementation of accompaniment measures to address the Conns of Independent Workers.
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