French VAT – SME Scheme: Reform Postponed Again
In its press release dated April 30, 2025, the French Ministry of the Economy, Finance, and Industrial and Digital Sovereignty announced a further postponement of the VAT exemption threshold reform, now delayed until the end of 2025.
Initially adopted as part of the 2025 Finance Act, the reform aimed to lower the VAT registration threshold to €25,000 in annual turnover, across all economic sectors. The proposal sparked strong criticism, particularly from small businesses and several members of Parliament.
Originally scheduled for implementation on March 1, 2025, the reform had already been suspended until June 2025 to allow time for stakeholder consultations.
Due to the lack of consensus, the reform will now be reconsidered as part of the 2026 Finance Bill. Its future remains uncertain, but no changes to the threshold should apply for the current year.
🔗 Read the official press release
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