- The 2025 Finance Law has established a unified VAT exemption threshold of €25,000, aimed at reducing competitive distortions between businesses operating under VAT exemption and those subject to VAT, in line with recent European regulations.
- A consultation period from February 7 to February 28, 2025, allowed over fifty professional federations and parliamentarians to voice their concerns and suggestions regarding the reform, resulting in mixed opinions; while some federations opposed the measure, a majority expressed neutrality or support for addressing competition inequities.
- In response to the feedback received, the government plans to propose adjustments to the reform in the coming days and has decided to suspend the implementation of the new VAT measures until June 1, 2025, allowing time to address stakeholders’ concerns without requiring immediate compliance from affected businesses.
Source: presse.economie.gouv.fr
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
