Question 4971 — value added tax

Summary

Mr. Jérôme Buisson alerts the Minister of the Economy, Finance and Industrial and Digital Sovereignty on the lowering of the VAT exemption threshold for micro-entrepreneurs. Under the guise of simplification and tax harmonization, this measure is in reality dangerous for the competitiveness of self-employed people, who are pillars of the French economy. They represent nearly 14.1% of the total turnover of French companies and more than 2.5 million jobs. This lowering of the franchise threshold to 25,000 euros risks having repercussions on their competitiveness and by extension on the tax revenues of the State, of which the value added tax (VAT) constitutes the main source of revenue. Companies exceeding this fateful amount will only have two options to avoid jeopardizing their accounts: either pass on the VAT directly on sales prices, while the purchasing power of the French is at half mast and competition is tough in these sectors; or absorb it, jeopardizing their financial balance. In both cases, many self-employed entrepreneurs risk being weakened, even though the number of business failures has never been so high in 2024 and micro-enterprises are particularly sensitive to bad situation. To avoid failure, some are considering going illegal by not declaring their income in order to avoid paying VAT. This new increase in taxation satisfies neither consumers, nor the State, nor the companies concerned and directly threatens the national economy. The MP wishes to know if the Minister intends to table a bill to rectify this arbitration. He would also like know the reasons that led him to make this decision.

Machine translation from French. The official text remains authoritative.

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