As of 1st January 2026, the turnover ceilings governing access to the country’s small business micro-entreprise tax regime have been increased for the first time in several years.
The adjustment, valid through 2028, reflects inflation and the steady expansion of self-employment across the economy.
There are around 3 million businesses who use the micro-entreprise tax regime, whose appeal lies in administrative minimalism. Business owners benefit from simplified accounting, flat-rate expense deductions and social contributions calculated directly as a percentage of turnover (not profit!).
From 2026 to 2028, the new turnover ceilings are set at:
€203,100 for sales of goods, food for on-site consumption and accommodation services (up from €188,700);
€83,600 for service activities and liberal professions (up from €77,700).
For mixed activities, the overall ceiling is €203,100, with a sub-limit of €83,600 applicable to the services component.
Exceeding the turnover threshold in a single year does not automatically trigger expulsion. Only if revenue exceeds the ceiling for two consecutive years is an owner obliged to switch regimes on 1st January of the following year.
VAT
Nevertheless, despite these increases, the VAT exemption thresholds, which are lower, remain.
The VAT thresholds are:
€85,000 for sales and accommodation activities, with a tolerance ceiling of €93,500;
€37,500 for services and liberal professions, with a tolerance ceiling of €41,250.
If turnover remains below the standard threshold, the business does not charge VAT and cannot reclaim VAT on its purchases. If revenue exceeds the higher tolerance threshold during the year, VAT becomes chargeable immediately.
Thus, a business with a turnover of €80,000 can become liable for VAT once the turnover exceeds €37,500, with the accounting that entails, despite remaining a micro-entreprise. The imposition of 20% on the price of services or goods, can obviously have a major impact on the competitiveness of the business.
Last year the government proposed to introduce a single VAT exemption threshold of €25,000, but this was finally abandoned after widespread criticism from within and outside of parliament.
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