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Exceeding the turnover of a micro-entrepreneur: what effects?

Verified 19 août 2020 - Directorate of Legal and Administrative Information (Prime Minister), Ministry of Economy

Micro-entrepreneur status applies as long as the annual turnover (actually received in the calendar year) does not exceed the thresholds of the micro-enterprise tax system. During his activity declaration, the micro-entrepreneur created a single company: exceeding the turnover thresholds does not affect his legal status, he remains an individual entrepreneur.

Regarding the micro-enterprise system, turnover thresholds HT depend on the activity:

  • Micro-BIC scheme (industrial and commercial benefits)
  • Micro-BNC scheme (non-commercial profits)

In the first year of operation, the AC HT taken into account for an overrun will be calculated in proportion to the number of months of existence of the company.

For example, if the company exists since 1to February 2020, then the threshold not to be exceeded is calculated as follows: (176 200 / 12) x 11= 161 516 €

This adjustment is called prorate temporis of year N HT AC (1mother year of existence). This HT AC serves as a base year for subsequent years.

Thresholds ::

Thresholds in 2020 compared to 2019 revenues

Situation of the micro-entrepreneur according to the turnover excluding tax realized

Benefits of the micro-enterprise scheme

Shifting from the individual enterprise system

Business Activity

Until €170,000

Beyond €170,000

Accommodation activity: hotel, guesthouse, classified country cottage furnished with tourism, furnished with tourism

Until €170,000

Beyond €170,000

Services (including rural cottages not classified as tourist furnished)

Until €70,000

Beyond €70,000

Liberal professions

Until €70,000

Beyond €70,000

Thresholds in 2021 compared to 2020 revenues

Situation of the micro-entrepreneur according to the turnover excluding tax realized

Benefits of the micro-enterprise scheme

Shifting from the individual enterprise system

Business Activity

Until €176,200

Beyond €176,200

Accommodation activity: hotel, guesthouse, classified country cottage furnished with tourism, furnished with tourism

Until €176,200

Beyond €176,200

Services (including rural cottages not classified as tourist furnished)

Until €72,600

Beyond €72,600

Liberal professions

Until €72,600

Beyond €72,600

When you start a business, if you do not voluntarily opt for the real tax system, then your business will be subject to the micro-business tax system (micro-BIC) for the first 2 years of its creation.

If the business exceeds the threshold of CA HT for 2 consecutive years (N and N+1), then it will pass on the actual tax system (that of the individual business) in the year N+2.

It can remain on the micro (self)-enterprise tax system if the threshold of CA HT is exceeded only in one year.

The transition from one scheme to another in the event of an overrun shall take place on 1 January of the year following the latter, i.e. on 1 January of year N+2.

This applies in the 2 cases where the company exists either for 1 year or for more than 1 year.

Example :

A company created on 1to January 2020 performs an HT AC during the year 2020 of €195,000.. It therefore exceeds the €176,200 authorized to benefit from the micro (self)-enterprise tax system. It remains on this plan for its 2020 profits (income reported in the 2021 return). If €205,000 of CA HT in N+1, thus in 2021, then it exceeds the threshold authorized for 2 consecutive years. It remains on the tax system of micro (self)-enterprise in 2021, but it leaves it at the 1to January 2022.

If the turnover exceeds the authorized threshold in a single year, the entrepreneur may retain the micro-enterprise regime.

It shall lose this option if the threshold is exceeded over 2 consecutive years and changes to the ordinary law of the individual undertaking:

  • Taxation of simplified real profit (BIC) or controlled reporting (BNC) from 1to January following the year of the overrun (the micro-social scheme applies until 31 December of the year in which the CA was exceeded)
  • Social scheme for self-employed persons, from 1to January following the overrun.

Depending on his activity, the individual entrepreneur becomes taxable:

When changing over into the social system of the ordinary self-employed, the self-entrepreneur is informed by registered letter with acknowledgement of receipt and has a period of 1 month to contest it.