The micro-entreprise (sole proprietorship under a simplified tax and social security regime) scheme attracts hundreds of thousands of entrepreneurs in France every year, thanks to its administrative simplicity and advantageous tax framework. However, this freedom is subject to compliance with strict turnover thresholds. Exceeding these limits can lead to the loss of the status and an automatic transfer to a standard real tax regime. Whether you are a French national or a foreign resident wishing to launch your business in France, mastering these ceilings is essential to ensuring the long-term viability of your project. This comprehensive guide presents all the rules, essential calculations, and steps to follow to manage your micro-entreprise with peace of mind.
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The status of micro-entreprise (historically known as auto-entrepreneur) is governed by Article 50-0 of the Code général des impôts (CGI / French General Tax Code) for industrial, commercial, or artisanal activities, and by Article 102 ter of the same code for professional services (activités libérales). These texts set annual turnover limits excluding tax (chiffre d'affaires hors taxes - CA HT) beyond which the simplified tax (micro-fiscal) and social security (micro-social) regimes no longer apply.
These ceilings are set for three-year periods and have been updated for the period running from 2023 to 2025. They are divided into two main categories depending on the nature of the business activity:
For the sale of goods, merchandise, materials, food to take away or consume on-site, as well as for accommodation services (hotels, chambres d'hôtes / bed and breakfasts, classified rural gîtes), the annual turnover ceiling is set at 188,700 €.
For commercial services falling under industrial and commercial profits (bénéfices industriels et commerciaux - BIC), artisanal services, and professional services falling under non-commercial profits (bénéfices non commerciaux - BNC), the annual turnover ceiling is set at 77,700 €.
It is important not to confuse the micro-entreprise ceiling with the thresholds of the franchise en base de TVA (VAT exemption scheme, governed by Article 293 B of the CGI). Below these thresholds, the micro-entrepreneur does not charge VAT and cannot reclaim it. If they exceed these thresholds while remaining below the micro-entreprise ceiling, they must start charging VAT but retain their micro-entrepreneur status.
The VAT exemption thresholds (valid for 2023-2025) are as follows:
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When you start your activity during the calendar year, the turnover ceiling for the first year must be adjusted in proportion to the actual time of operation. This rule, often overlooked by creators, prevents an entrepreneur who started in December from generating the entire annual ceiling in a single month without losing their status.
The calculation formula is as follows:
$$\text{Prorated Ceiling} = \text{Annual Ceiling} \times \frac{\text{Number of days of activity remaining in the year}}{\mathbf{365}}$$
Note: The day count begins on the declared start date of activity during registration, and not on the day of the first payment received.
Take the example of Sofia, an IT consultant (professional service, annual ceiling of 77,700 €). She sets up her micro-entreprise on September 1, 2024.
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Many micro-entrepreneurs carry out several distinct activities within the same legal structure (for example, an electrician who also sells electrical equipment). In this case, it is referred to as a mixed activity (activité mixte).
The rules for combining ceilings are strict:
1. The overall turnover of all activities combined must not exceed the highest ceiling, i.e., 188,700 €.
2. Within this overall ceiling, the share of turnover generated by the service provision activity must not exceed its own specific ceiling, i.e., 77,700 €.
Take the example of Lucas, who sets up a business making and selling costume jewelry, combined with introductory creation workshops (provision of services).
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Exceeding the micro-entreprise ceilings does not lead to immediate and automatic de-registration. The legislator has provided a transition mechanism to protect growing businesses.
The micro-entrepreneur status is lost only if the turnover exceeds the ceiling (188,700 € or 77,700 €) for two consecutive calendar years.
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If you find that your turnover exceeds the authorized thresholds, you must anticipate the administrative transition. Here are the key steps to follow:
1. Step 1: Monitor your turnover daily
Keep a rigorous receipt book (livre des recettes). Identify precisely the date you exceed the VAT exemption threshold and the date you exceed the micro-entreprise ceiling.
2. Step 2: Declare and charge VAT (from the first day of the month in which the increased threshold is exceeded)
If you exceed the increased VAT threshold (101,000 € or 39,100 €), you must charge VAT from the first day of the month of the breach. You must request an intra-community VAT number from your Service des Impôts des Entreprises (SIE / Business Tax Office) via your professional space on impots.gouv.fr.
3. Step 3: Anticipate the change of tax regime
If the micro-entreprise ceiling is exceeded for the second consecutive year, contact your SIE before December 31 of the second year to record your transition to the real tax regime on the following January 1.
4. Step 4: Adapt your accounting
As soon as you switch to the real regime, the simplified cash accounting of the micro-entreprise is no longer sufficient. You must keep accrual accounting (for BIC) or complete cash accounting (for BNC), prepare a balance sheet, an income statement, and potentially join an Association de Gestion Agréée (AGA / Approved Management Association) or a Centre de Gestion Agréé (CGA / Approved Management Centre).
5. Step 5: Modify your legal status (Optional)
Switching to the real regime as a sole proprietorship (entreprise individuelle - EI) may prove to be less protective or less tax-efficient than a company structure. This is the ideal time to study the transformation of your business into a company (EURL, SASU, SARL, SAS) by consulting a legal professional.
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No. The calculation of turnover for micro-entreprise ceilings is based exclusively on sums actually received during the calendar year (from January 1 to December 31). Unpaid invoices or those pending payment are not counted.
You only lose the benefit of the VAT exemption (franchise en base de TVA). You must obtain an intra-community VAT number, charge VAT to your clients, and pay it to the State, while having the possibility to deduct VAT on your own professional purchases. However, you retain the ultra-simplified micro-entreprise regime for your income tax declarations and the payment of your social security contributions.
No, this is strictly prohibited. A natural person can only own one sole proprietorship (entreprise individuelle - EI), and therefore only one micro-entreprise. If you wish to carry out two completely different activities, you must group them within the same micro-entreprise by declaring a principal activity and a secondary activity (mixed activity regime).
If you exceed the annual (prorated) ceiling in your first year, this is considered your first year of exceeding. You retain the benefit of the micro-entrepreneur status for the second year. It is only if you exceed the ceiling again during this second year that you will switch to the real regime on January 1 of the third year.
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Legal information for guidance only, not personalised legal advice. For your specific situation, ask your question free of charge on AvocatAI — answers based on French law, in your language.