Final decision made on the French auto-entrepreneur scheme

On 12 June, during a cabinet meeting, a final decision was made regarding the auto-entrepreneur scheme. It was announced that €19,000 a year is the new income level cut-off point.

Sylvia Pinel, the minister responsible for artisans, commerce and tourism, said a threshold of €19,000 will decide whether a business can stay in the auto-entrepreneur scheme or not.

So, if the turnover of your business exceeds the threshold of €19,000 a year for two consecutive years, you will need to register within existing schemes.  However, businesses will benefit from a transition period to ensure a smooth change to increased social security contributions and taxation. This will be put in place to limit the impact on the cash flow of your business.

There will be no change if your business earns below the threshold of €19,000.

If your business offers commercial sales, €47,500 is the set limit per year. If you attain this level for two successive years, you will have to transfer to one of the ‘classic’ business registration schemes.

Editor Notes

I’ve heard a few grumbles recently about changes to the auto-entrepreneur scheme in France. Are you affected? Is it fair, and does it help or hinder the running of a small business in France? Let us have your comments.

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