The French government has postponed the planned reduction of the domestic VAT exemption threshold for small businesses until 2026, following public consultations.
The Finance Law for 2025 had originally set the new threshold at EUR 25,000 from 1 March 2025. However, after further consultations, the reform will now be reviewed as part of the Finance Law for 2026, with the previous thresholds remaining in place.
Earlier, the French Ministry of Economy and Finance announced that, from 1 June 2025, a standard VAT exemption threshold of EUR 25,000 in turnover would apply to all businesses, replacing the then-current EUR 27,500 threshold. Sector-specific thresholds for goods, services, and certain activities would be eliminated.
Originally planned for 1 March 2025, the change was postponed to allow for stakeholder consultations.
This announcement was made by the French Ministry of Economy and Finance on 28 February 2025.
