Plot twist! While the VAT reform for auto-entrepreneurs was supposed to come into effect on March 1, 2025, the government has suddenly suspended its implementation. In the face of a massive backlash from independent workers, a consultation has been opened to review the system.
But is this a real retreat from the government or just a strategic pause before an inevitable reform? 🤔
Breaking down the stakes, possible scenarios, and what this concretely changes for you. 🔥👇
1. The VAT Reform: A Bombshell for Auto-Entrepreneurs
Envisaged by the finance law of 2025, this reform aimed to drastically reduce the VAT exemption threshold. The project?
🔻 Before the reform:
✔ VAT exemption up to €37,500 for service activities.
✔ VAT exemption up to €85,000 for commercial activities.
⚠️ With the suspended reform: A single threshold of €25,000 was anticipated for all auto-entrepreneurs.
👉 Why this reform? Officially, it was about preventing unfair competition between independent workers benefiting from the VAT exemption and those already subject to it. But the real hidden reason is also a desire to recover €400 million in additional tax revenues.
❌ Problem: This reform would have affected hundreds of thousands of auto-entrepreneurs, forcing them to charge VAT, lose their competitiveness against individual clients, and bear a much heavier administrative burden.
2. A Historic Mobilization That Made the Government Bow
From the announcement of this reform, independent workers made their voices heard:
📢 Several thousand auto-entrepreneurs protested, denouncing an attack on their economic model.
📉 Some planned to voluntarily reduce their activity to avoid exceeding the threshold and applying VAT.
🛑 Experts warned of the risk of undeclared work if this reform were to take effect.
In response to this massive revolt, the government was forced to reconsider its position and announced an immediate suspension.
👉 Good news? Yes, but… for how long?
3. The Consultation: A Simple Political Maneuver?
The government has opened a consultation phase with representatives of the independents. The announced objective?
✔ Listen to the concerns of auto-entrepreneurs.
✔ Find possible adjustments.
✔ Propose a more acceptable alternative.
⚠️ But beware! The suspension is not an abandonment. The government claims that changes are still necessary to comply with new European VAT rules.
👉 Three possible scenarios:
1️⃣ A simple postponement: The reform could be implemented in a few months with minor adjustments.
2️⃣ A softened version: The threshold of €25,000 could be raised, or transition measures could be put in place.
3️⃣ A definitive abandonment (unlikely): Faced with too much opposition, the state could back down… but nothing indicates this at this stage.
4. What Should You Do Now?
📌 Good news for you:
✔ The current thresholds remain in place (€37,500 and €85,000).
✔ You do NOT have to charge VAT as long as the reform is not adopted.
✔ The procedures remain the same, no need to anticipate immediate changes.
💡 But stay vigilant!
✅ Follow the evolution of the consultation to know if new obligations will arise.
✅ Prepare to adjust your pricing if VAT becomes mandatory at a new threshold.
✅ Optimize your expenses now to offset any future VAT.
💬 And you, what do you think of this suspension? Do you believe the government will actually abandon this reform or simply prepare it better to reintroduce it later? Let me know in the comments! 👇
Céline, a passionate blogger about news and travel, I decode the trends that make the world buzz. Whether it’s exploring hidden corners of the planet or analyzing the hottest topics in the news, I share my discoveries here with a curious and authentic perspective. Join me to travel through words and ideas!
