VAT threshold for micro-entreprises in 2026: what remains of the reform after the government's U-turn

In brief: In 2026, the VAT exemption thresholds don't move. For services, the threshold stays at €37,500, with an increased ceiling of €41,250. For sales of goods, it stays at €85,000, with an increased ceiling of €93,500. In late 2024, the government had considered a single, lower threshold in its budget bill. That plan was ultimately dropped. For a micro-entrepreneur, knowing these thresholds remains essential. They determine how you invoice, how you report your turnover, and how you anticipate a move to actual VAT. This article takes stock of what has changed, what remains stable, and how to manage this transition without stress.

What VAT thresholds apply to micro-entreprises in 2026?

In late 2024, the government proposed a single exemption threshold. It was meant to apply to all micro-entreprises, regardless of their activity. This measure would have tightened independents' room to manoeuvre. Mixed activities, those combining sales and services, would have been hit hardest. The sector mobilised against this plan. The government first suspended the measure, then dropped it. In 2026, it's therefore the historical thresholds that apply. They remain differentiated by type of activity.

What are the VAT exemption thresholds in 2026?

The VAT threshold for micro-entreprises comes in two levels. It all depends on your activity.

The base threshold serves as an annual benchmark. As long as your turnover stays below it, you keep the exemption without any special step. The increased threshold acts as a tolerance margin. Exceeding it during the year has immediate consequences. They are stricter than a simple breach of the base threshold. These two levels coexist deliberately. They give a bit of flexibility to activities whose turnover varies from one year to the next.

Why do thresholds differ between services and sales of goods?

An IT consultant, a copywriter or a coach fall under services. Their exemption ceiling is the lower of the two. It stands at €37,500, or €41,250 at the increased threshold. A shopkeeper who resells products falls under sales of goods. So does a tradesperson who mostly invoices supplies, or a catering business. Their ceiling rises to €85,000, or €93,500 at the increased threshold.

This distinction is explained by the nature of the activity. A service activity often generates a higher margin, on a smaller turnover. A trading or catering activity handles a larger volume of business. Its unit margin, however, remains smaller.

Some activities mix both. A tradesperson who sells equipment while also invoicing their labour, for example. In that case, an overall ceiling applies, set at the higher threshold. The services portion remains subject to its own, lower ceiling. If your activity is mixed, have your situation checked by an accountant. The calculation depends on the actual split between sales and services.

Are you VAT-exempt, and what to do in case you exceed the threshold?

Before talking about exceeding the threshold, you first need to know where you stand. Here's how to make a simple diagnosis.

How do you know if you're VAT-exempt?

The VAT exemption scheme (franchise en base) is a simple regime. It exempts small businesses from charging and remitting VAT. This exemption applies as long as turnover stays below the thresholds set for the activity. In practice, if you don't apply any VAT on your invoices, you are most likely exempt.

To check, add up your invoiced turnover since 1 January. Compare this total to the threshold for your activity, services or goods. Redo this calculation regularly, not just once a year. Many independents discover they've exceeded the threshold too late. They add up their invoices at year-end, instead of tracking their running total. Monthly monitoring avoids this late discovery.

What happens if you exceed the exemption threshold?

Two scenarios exist. First case: your turnover stays between the base threshold and the increased threshold at year-end. You keep the exemption until 31 December. You then switch to the real VAT regime the following year. Second case: you exceed the increased threshold during the year. VAT applies from the month the breach occurs, without waiting for the following year.

In both cases, the switch brings new obligations. You must apply for an intra-Community VAT number. You must also charge VAT to your clients, from the date of the change. You then declare the amounts collected to the tax authorities, under the regime assigned to you. Your invoicing tools must be adjusted accordingly. A VAT line now appears on each document.

Should you register for VAT before exceeding the threshold?

A micro-entrepreneur can choose to opt out of the exemption even before reaching the threshold. This option, known as opting to pay VAT, addresses specific situations. If you're investing in expensive equipment, recoverable VAT on your purchases can ease your cash flow. If most of your clientele is made up of businesses, charging VAT changes nothing to their actual cost. They recover it themselves.

The downside lies in the administrative burden. Once the option is activated, you must declare and remit VAT on a regular schedule. This requires more rigorous bookkeeping. For a micro-entrepreneur whose clientele is mostly individuals, this option is rarely worthwhile. It amounts to raising your prices, with no benefit for the client.

How does the VAT threshold change your invoicing and quotes?

The VAT threshold isn't just an administrative concept. It concretely determines how you write every invoice and every quote.

How to invoice when you're VAT-exempt?

As long as you stay below the thresholds, your invoices carry no VAT line. The excl.-tax amount you state is also the total amount to pay. A mandatory notice must nonetheless appear on the document: "VAT not applicable, franchise en base scheme" (VAT exemption scheme). This wording clearly signals to your client that you aren't liable for VAT.

A compliant invoice under the exemption scheme generally includes:

• your professional identity: name, address, SIRET number
• a unique, chronological invoice number
• the description of the service or goods sold
• the total amount, without distinguishing excl. and incl. tax, since there's no VAT
• the notice "VAT not applicable, franchise en base scheme"
• your client's contact details

This simplicity is one of the appeals of the scheme for independents who are starting out.

Should you adjust your invoices and quotes if you're approaching the threshold?

When your cumulative turnover approaches the threshold, plan ahead for the transition. This avoids unpleasant surprises for the client. A quote issued a few weeks before a possible switch can spell this out. The price stated is excl. tax. VAT may be added if the threshold is exceeded before the service is carried out.

Notify your regular clients in advance. Don't wait for the first invoice with VAT to inform them, as this makes the transition much smoother. A client used to tax-free invoices could be surprised to see their amount rise overnight, if they haven't been warned. A simple sentence in an email exchange is often enough to defuse any misunderstanding.

How to declare your VAT if you exceed the exemption threshold?

Once switched to the real VAT regime, you must declare the VAT collected. The frequency is monthly, quarterly or annual, depending on the regime assigned by your tax office. This declaration goes through a CA3-type form. You state the VAT collected on your sales, and the VAT paid on your business purchases. The difference is to be remitted to the authorities.

This change in reporting regime intersects with another timeline, that of e-invoicing. The obligation to receive electronic invoices applies from 1 September 2026. It also concerns exempt micro-entrepreneurs, even without VAT to charge. The obligation to issue electronic invoices follows a different timeline. It applies on 1 September 2026 for large companies and mid-sized enterprises. It applies on 1 September 2027 for SMEs, small businesses and micro-entreprises. If your turnover pushes you to the real regime, keep this issuing deadline in mind, on top of your new VAT obligations.

How to anticipate approaching the VAT threshold?

The switch isn't something to simply endure. Good anticipation turns a change of regime into a simple management adjustment.

How to track your turnover to anticipate the switch?

Monthly monitoring of your cumulative turnover remains the most reliable habit. Compare this total, month after month, to the base threshold for your activity. When your turnover approaches the threshold, it's the right time to prepare for what follows. Apply for your VAT number. Find out about the reporting arrangements. Talk to your accountant, if you have one.

Spotting the signals early changes everything. This way you avoid discovering the breach once the year is already over. At that point, adjusting your invoicing pace or preparing your clients becomes harder.

Should you raise your prices before switching to the real regime?

Take a concrete example. You invoice a service at €1,000 excl. tax to an individual client. Under the exemption, they pay €1,000, full stop. Under the real regime, you add VAT at the rate applicable to your activity. The amount charged rises accordingly. If this client is an individual, who doesn't recover VAT, the increase shows up immediately on their quote.

Two strategies are open to you. The first, absorption, means keeping the same total price for the client. Your net margin decreases accordingly. The second, pass-through, means adding VAT on top of your usual price. The end client then pays more. For a professional clientele, pass-through rarely causes a problem. Businesses recover VAT themselves on their purchases. For an individual clientele, it's better to communicate in advance. Explain that this change stems from a tax obligation linked to your business's growth, not a commercial decision.

How to easily keep an eye on your cumulative turnover?

Creating a quote in under 60 seconds, as Quickote allows, changes how an independent handles their daily admin. Centralising your quotes and invoices in one place also changes the game. You get an overall view of your cumulative turnover since the start of the year, without juggling several files. It's often this lack of centralisation, more than a lack of vigilance, that makes a micro-entrepreneur lose track of the threshold during the year.

How to keep invoicing correctly during the transition?

Whether you're exempt or already under the real regime, the correct legal notice must appear on every document issued. With Quickote, you keep creating your quotes and invoices as usual. Only the notice displayed changes, depending on your situation at the time: exemption scheme or VAT applicable.

Quickote generates your invoices in Factur-X format. Connection to an approved platform, required for the mandatory issuance from September 2027, is being finalised.

That said, Quickote only makes sense for a micro-entrepreneur mainly looking to create quotes and invoices quickly, whether exempt or under the real regime. If your need is for full bookkeeping, with bank reconciliation or payroll management, another tool will suit your situation better.