Must I change from micro status to régime réel?
I have been a micro-entrepreneur for years but as of September 2017 went over the earning limits. Urssaf said my status would change to régime réel in 2018 and I should get a VAT number from the tax office. I have started to add VAT to bills but I see that the micro ceilings will double in 2018 and wonder if I can maintain the status. I work from home with few expenses and do not use an accountant. Réel is not of interest. K.W.
There is a two-year tolerance period for exceeding the ceiling as long as a higher upper threshold is not broken. Then either if the level of income after two years is still above the normal threshold, or if the upper threshold is broken, you are obliged to move onto the réel.
It sounds as if you have already exceeded the higher threshold, in which case it is correct that you have been charging VAT, as the rules say that as soon as this is passed you should start doing so. What is more, despite plans to raise the micro ceilings, there are no plans to raise those for being obliged to charge VAT, meaning that for the first time we can expect that in 2018 some micro-entrepreneurs will have to charge it – in other words, raised ceilings or not, you can unfortunately expect to continue with that.
The issue of whether or not you are obliged to pass into the réel tax and social charges regime as of 2018 is more questionable, however, as the Loi des Finances 2018 (still being finalised on going to press) confirms that the micro ceilings are to be doubled, and says (article 10) “these new rules…. apply from the taxation of 2017 revenue”. It therefore appears possible for you to remain a micro-entrepreneur with regards to income tax and social charges. We suggest that you query this with Urssaf and the tax office.
