Are you interested by the “auto-entrepreneur” scheme?

 

More and more entrepreneurs are interested by the auto-entrepreneur regime because of its social and accounting advantages.

However, many of our clients want to know about the thresholds of this structure.

This can be quite confusing as since January 2018 there are 2 types of thresholds:

1. The first threshold is for VAT, called “vat exemption limit (plafond de franchise de TVA)”. If you are under this cap, you are VAT exempt, meaning that you won’t bill and you won’t have to pay VAT.

The caps are:

• 82 800€ for purchase and sale of goods
• 33 200€ for service providers

 

2. The second threshold concerns the auto-entrepreneur structure. This is the maximum amount of turnover you can generate in 1 year to be able to benefit from this regime.

The caps are:

• 170 000€ for purchase and sale of goods
• 70 000€ for service provision

If you surpass the 1^st threshold, you will have to bill and pay VAT.
If you surpass the 2^nd threshold, you won’t be an auto-entrepreneur anymore and you will have to change your structure to an “entreprise individuelle”.