What if I go over French VAT threshold this year?

I am a micro-entrepreneur and am going to go over the limit this year when I must start charging VAT. Does that mean I must charge VAT retrospectively to all my clients from the start of the year? L.D.

25 September 2019
By Hugh MacDonald

VAT is now chargeable as soon as one goes over the threshold limits of €82,800 for commerce or providing food or holiday rentals and €33,200 for services.

A transitional rate which was a few thousand euros higher has been removed.

In addition to having to retain invoices in order, there are two possible systems.

The simplest is that one accounts for the VAT charges on sales at the time of encashment.

In the second, based on the date invoices are issued, a series of ledgers are required to track the issue of the invoice and then its payment.

In both cases it is worth having software to track VAT receipts and VAT on things you buy and calculate what is owed to or from the tax authorities at the end of each quarter or month.

The micro-entrepreneur system involves charging VAT as of the moment that the threshold is exceeded and not as of the following year, and no, the charging of VAT is not retrospective.


Reader's query answered by Hugh MacDonald

The Connexion welcomes queries and regularly publishes a selection with answers. However, please note that we cannot enter into individual correspondence on money topics. Queries may be edited for length and style. Due to the sensitive nature of topics we do not publish full names or addresses on these pages. Send your financial query to news@connexionfrance.com

The information here is of a general nature. You should not act or refrain from acting on it without taking professional advice on the specific facts of your case. No liability is accepted in respect of these articles. These articles are intended only as a general guide. Nothing herein constitutes actual financial advice

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