France Sets Out VAT Exemption Thresholds Retroactively Applicable from 1 March 2025
The parliament has adopted a law setting out VAT exemption thresholds retroactively applicable as from 1 March 2025, effectively repealing the planned reduction introduced by the 2025 Finance Law which the government suspended (seeGovernment Delays VAT Exemption Threshold Reduction for Small Businesses Through 2026 Following Public Consultation (2 May 2025)).
Accordingly, the parliament reinstated the previously applicable thresholds. These thresholds are as follows:
- EUR 85,000 for turnover derived in the preceding calendar year from supplies of goods or the provision of accommodation services and food and drinks for on-premises consumption;
- EUR 37,500 for turnover derived in the preceding calendar year from services other than the provision accommodation and food and drinks for on-premises consumption;
- EUR 50,000 for turnover derived in the preceding calendar year from services rendered by lawyers, writers and artists acting in their professional capacity; and
- EUR 35,000 for turnover derived in the preceding calendar year by lawyers, writers and artists from services that do not form part of their professional status.
It is worth noting, however, that the 2026 Finance Bill, currently under parliamentary discussion, proposes a reduction of the above-listed thresholds (see2026 Finance Bill in Depth: Government Proposes Temporary Tax on Low-Value Items from Outside EU to Private Individuals, Increase in Stamp Duties (16 October 2025)).
The law reinstating the VAT exemption thresholds was published, under law No. 2025-1044, in the Official Journal on 4 November 2025.
Report from Francesco De Lillo, Senior Associate, IBFD. Follow our reporting on this via our daily Tax News Service (subscribers only).