French Micro Enterprise turnover limits increased for 2020

A few changes were voted as part of the Loi de Finance in France 2020. Here are the key changes that will impact new or existing auto entrepreneurs. A quick reminder that auto entrepreneur and micro entrepreneur are the same thing.

Auto entrepreneur turnover threshold in 2020

Auto entrepreneurs’ turnover threshold has been increased for the next three years. New thresholds from 1st Jan 2020 are as follows:

  • Trade (ecommerce, gites) from 170,000€ to 176,200€
  • Services (professions liberales and artisans) from 70,000€ to 72,500€

The turnover threshold is based on a calendar year and therefore restarts on 1st January the following year. Bear in mind that there is a pro-rata rule for your first year in business, meaning that if you start halfway through the year, your maximum turnover is also halved.

Auto entrepreneur TVA threshold in 2020

The increase in turnover threshold has a direct impact on the TVA threshold, which has also been increased:

  • Trade (ecommerce, gites) TVA threshold of 85,500€,
  • Services (professions liberales and artisans) TVA threshold of 34,400€.

This threshold is for your first year in business. If you are at least in your second year in business, these thresholds are slightly higher, with 94,300€ for trade and 36,500€ for services.

If you go over these thresholds, you will have to request a TVA number from your tax office;  Service Impots Entreprises (SIE). It can take a good three weeks to get your TVA number, so it is best to plan this move ahead. Remember that all invoices issued for the month that you go over the threshold will be liable to TVA.

There is no change to the cotisations payable by micro entrepreneurs.