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