A return to the previous VAT-free regime
Law no. 2025-1044 of 3 November 2025 re-establishes the basic VAT exemption as it existed at 1st January 2025.
This decision follows the challenges raised by the reform planned for 1 March 2025 in the Finance Act for 2025, which envisaged abolishing specific allowances and lowering the threshold to €25,000, regardless of the type of activity.
As a result turnover ceilings to qualify for VAT exemption are maintained:
| Category | Year N-1 | Year N |
|---|---|---|
| Commercial and similar activities | 85 000 € | 93 500 € |
| Services | 37 500 € | 41 250 € |
| Specific activities (lawyers, authors, performers) | 50 000 € | 55 000 € |
| Other special services | 35 000 € | 38 500 € |
These thresholds apply to until the end of 2025, This is pending a new reform scheduled for 2026.
Professions still benefiting from a specific exemption
Certain professions retain an exemption system adapted to their activity:
- Lawyers for services provided as part of their regulated activity; ;
- Authors of intellectual works for the delivery of their works or the transfer of rights; ;
- Performers for operations relating to the exploitation of their economic rights
These specific schemes, which were initially due to disappear in 2025, are therefore extended at least until the end of the year.
What this means for VSEs and SMEs
The reinstatement of the basic VAT exemption scheme will make it easier for taxpayers to pay VAT. stability at sole traders, micro-businesses and small businesses.
By remaining below the thresholds indicated, these companies continue to invoice without VAT and simplify their accounting management.
➡️ This allows :
- avoid periodic VAT returns and payments; ;
- offer more competitive rates for individual customers; ;
- clear fiscal visibility for 2025.
On the other hand companies exceeding these thresholds will have to anticipate a exit from the plan and ensure that VAT is applied correctly from the month following the overrun.
And after 2025?
Le finance bill for 2026 provides for a new redesign of the system :
- deductible threshold set at 37 500 € (€25,000 for building work) ;
- abolition of specific deductibles for lawyers, authors and performers.
These trends confirm a European harmonisation VAT exemption, in line with EU Directive 2020/285.
Novalliance can help you with your VAT procedures
At Novalliance, we support VSEs, SMEs and the self-employed in the analysis of their tax regime and in the practical VAT management :
- checking compliance with thresholds ;
- simulation of the impact of leaving the scheme ;
- assistance with invoicing and declarations.
Need a personalised diagnosis?
Contact our cabinand for tailor-made support.
