Type: Legislation
Effective Date: None
France’s Senate has rejected proposed 2026 Finance Bill measures that would have lowered VAT registration thresholds for small businesses and self-employed workers, preserving the current exemption limits. The withdrawn reform would have introduced significantly reduced turnover thresholds from 2026, triggering mandatory VAT registration for many micro-enterprises. Existing 2025 rules therefore continue to apply, with higher turnover ceilings for goods, services, legal activities, and other professional sectors. The Senate cited concerns over administrative and financial burdens, noting that earlier VAT registration would have required affected businesses to charge VAT, maintain compliant records, and file periodic returns. Although the proposal has been cancelled for 2026, further VAT reform discussions are expected, and small operators should continue to monitor legislative developments.
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