Good news for many micro-entrepreneurs in France: plans to lower VAT threshold rejected by Senate
Vote reverses proposal to lower tax exemption thresholds for self-employed workers
The 2026 VAT reform for self-employed workers will be definitively cancelled but future proposals are still to be expected
JLco Julia Amaral/Shutterstock
The French Senate has rejected plans to lower VAT thresholds for small business and self-employed workers.
On December 2, senators voted in favour of amendments to remove the proposal from the 2026 draft finance bill, which forms the annual budget along with the social security finance law.
This mirrored the views of MPs in the Assembl茅e nationale on November 20, where amendments were passed almost unanimously: 239 votes in favour and four abstentions.
This means the reform, which would have introduced a single VAT exemption threshold of 鈧�37,500 for micro-entrepreneurs (鈧�25,000 for the construction sector) from January 1, 2026, will be definitively cancelled.
VAT exemption thresholds are currently set at 鈧�85,000 for running commercial businesses and renting out furnished accommodation, and 鈧�37,500 for services and trades. Self-employed lawyers, authors and performers have a threshold of 鈧�50,000 for their 鈥榤ain activities鈥� and 鈧�35,000 for 鈥榬elated activities.鈥�
Future reforms are still possible
Minister of Public Accounts, Am茅lie de Montchalin, pointed out that the government has been treating self-employment on a 鈥済eneral basis鈥� covering aspects including taxes, welfare and social protection.
鈥淐learly, we need to take a more comprehensive approach,鈥� she said before the Senate.
The 2025 budget already sought to create a single VAT exemption threshold of 鈧�25,000 for micro-entrepreneurs.
Many small business owners were against the plans set out in the budget as they would bring more paperwork, extra accounting costs, and require them to increase their business rates.
This measure was delayed and then definitively rejected by MPs in October.
