LOI 2025-1044 raised exemption limits from 1 March 2025 and added a tobacco tax to offset revenue loss.
The French government officially promulgated LOI No. 2025-1044 on 3 November 2025, aimed at creating a stable, fair, and transparent fiscal framework for micro-entrepreneurs and small businesses.
The law reforms the Value Added Tax (TVA) franchise regime under Article 293 B of the General Tax Code (CGI) and adjusts exemption thresholds for different types of business activities, with provisions retroactive from 1 March 2025:
- General businesses: Previous-year turnover threshold of EUR 85,000, rising to EUR 93,500 for the current year.
- Service activities (excluding on-site sales and accommodation): Previous-year threshold of EUR 37,500, rising to EUR 41,250 for the current year.
- Specific liberal professions under Article 293 B I bis (including lawyers, authors, and performing artists):
- Professional operations: Previous-year threshold of EUR 50,000, rising to EUR 55,000 for the current year.
- Other operations: Previous-year threshold of EUR 35,000, rising to EUR 38,500 for the current year.
The law clarifies that if a business exceeds these thresholds in the current year, the TVA franchise ceases immediately for all relevant operations.
To compensate for the expected reduction in state revenue, the legislation also introduces an additional tax on tobacco excise duties.
LOI No. 2025-1044 provides clear guidance and stability for France’s micro-entrepreneurs and small businesses, helping them navigate VAT obligations with updated thresholds.
