Earnings limit to benefit from French ‘micro’ rules?

The threshold for income under the micro-entrepreneur system for rendering services is €70,000.

Note that you must apply VAT if your income exceeds €32,200.

The threshold benefits from tolerance levels.

If income in a given year exceeds the threshold and this is the first occurrence in a two-year period, then the following year the trader is allowed to continue as a micro-entrepreneur.

If you go over the threshold again the year after that, then you must change regime and declare under the réel tax system, with more complex accounting.

Reader's query answered byHugh MacDonald

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