French Government Delays VAT Threshold Reduction for Small Businesses Until June

The controversial measure, part of the 2025 budget, faces significant backlash and will undergo further review and adjustments.

The reduction of the VAT exemption threshold for small businesses, originally set to take effect on March 1, has been postponed until June 1, 2025.
The measure proposed lowering the threshold to €25,000 in annual revenue, down from €37,500 for services and €85,000 for goods sales.
The government cited the need for further consultation with stakeholders and parliamentarians to address widespread concerns from small business owners and professional organizations.
Critics argue the reform would harm the competitiveness and financial stability of microentrepreneurs, while the government estimated it could generate €700 million in revenue this year.
Adjustments to the measure, potentially including sector-specific thresholds, are being considered as part of ongoing discussions.