What are the consequences for a micro-entrepreneur who exceeds the turnover thresholds?

Verified 01 January 2024 - Legal and Administrative Information Directorate (Prime Minister), Ministry of Economy

The status of micro-entrepreneur applies as long as your annual turnover (actually cashed in during the calendar year) does not exceed the thresholds of the micro-company tax system.

Turnover thresholds HT: titleContent the micro-company regime depends on the activity you are carrying out.

In the first year of operation, the VAT turnover threshold taken into account to establish an excess will be calculated according to the number of days your company has existed.

For example, if the company (with commercial activity) has existed since January 31, 2023, then there are 334 days remaining until December 31, 2023. The threshold not to be exceeded is calculated as follows: (€188,700 x 334) / 365 =€172,673.

This adjustment is called pro rata temporis of turnover excluding taxes in year N (1re year of existence). The turnover excluding tax is used as a reference year for the following years.

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Commercial and accommodation activity

You are subject to the micro-company regime if your turnover does not exceed €188,700.

If you exceed that threshold, you go to the simplified real tax system.

Activity of service provision (including rural lodges not classified as tourist furniture)

You are subject to the micro-company regime if your turnover does not exceed €77,700.

If you exceed that threshold, you go to the simplified real tax system.

Warning  

The 2024 budget amended the rules on direct or indirect rentals of furnished tourist accommodation. They will be added to our page as soon as we have more details on the subject.

Liberal activity

You are subject to the micro-company regime if your turnover does not exceed €77,700.

If you exceed that threshold, you go to the simplified real tax system.

At the time of creation on your company, you are automatically subject to the micro-company regime during the first 2 years of your existence.

If you want to be subject to the effective tax regime, you must opt for to benefit from this plan when creating your company. This option should be taken when you first report results.

If you exceed the turnover thresholds of the micro-company scheme for 2 consecutive years, you switch to the simplified real tax scheme. This change of regime takes place on 1er January of the year following the 2nde the year you exceeded the threshold.

If you exceed the micro-company thresholds for only one year, you remain subject to the micro-company regime.

Example :

You create your business company on May 8, 2024 and earn more than €188,700 the first year.

If you also exceed that threshold in 2025, then you'll exit the micro-company regime and you'll be subject to the actual tax regime as of the 1er January 2026.

However, if you are below the threshold in 2025, even if you exceeded the threshold in 2024, you will continue to benefit from the micro-company regime in 2026.

When you have exceeded the threshold of turnover excluding tax of the micro-company individual business regime (for 2 consecutive years), then you switch to the social and fiscal regime applicable to a

FYI  

The micro-social scheme shall apply until 31 December of the year in which the turnover threshold was exceeded.

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