Letters: VAT threshold reduction would hurt small businesses in France
Connexion reader notes that the additional tax burden would bring more bureaucracy with it
The proposed change to France's VAT threshold would complicate invoicing
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To the Editor,
I write in response to the proposed VAT threshold reduction.
The microentrepreneur status is designed to enable small businesses to thrive without the burden of too many overheads – it seems the French government has lost sight of this.
The impact of reducing the VAT threshold for microentrepreneurs to €25,000 is not only extra administration but, of course, 20% extra cost on products/services to personal customers.
This is bound to affect the income of small businesses. It will also mean that all those additional micro businesses will be required to use a paid-for electronic invoicing platform with effect, at the moment, from 2027.
Read more: VAT on small businesses: French MPs call for no reduction in threshold
As a self-employed consultant (I already exceed the VAT threshold), I issue 15-20 invoices/year, each of which is approximately a five-minute job. I have had an Excel-based system for doing so for the past 15 years which has worked perfectly well.
No doubt choosing a platform and moving to electronic invoicing will be totally seamless and not stressful at all, as well as work comprehensively for my international clients.
I will not be bombarded with offers from scammers and chancers and my bank will definitely not just try to sell me another product.
The likely monthly cost of €20-25 will almost certainly result in 'increased competitiveness' quoted on the French government website as a benefit of electronic invoicing.
I look forward to reporting how this has helped my business thrive, in a future letter. Yours ironically.
Paula Lernelius, by email
What would the proposed change to VAT mean for your business? How would you adapt? Let us know at letters@connexionfrance.com
