Auto-Entrepreneur VAT Rules: Everything You Need to Know

As an auto-entrepreneur, you automatically benefit from the franchise en base de TVA (VAT exemption) if your revenue stays below: • €36,800 for services • €91,900 for goods

This means you don't charge VAT, don't file VAT returns, and can't reclaim input VAT on purchases.

You lose the exemption when: 1. You exceed the tolerance threshold (€39,100 services / €101,000 goods) even once 2. You exceed the base threshold two consecutive years

From that point, you must: • Apply for a VAT number • Charge 20% VAT on all invoices • File regular VAT returns • You CAN now reclaim input VAT on business expenses

You can opt for VAT registration even below the threshold. This makes sense if: • Your clients are mostly businesses (they can deduct the VAT) • You have significant business expenses (recover input VAT) • You want to appear more professional • You sell to other EU countries regularly

To opt in, submit a request to your SIE (Service des Impôts des Entreprises).

When transitioning to VAT: 1. Inform clients of upcoming price changes 2. Update all invoice templates 3. Set up VAT tracking in your accounting 4. Choose between monthly or quarterly filing 5. Consider adjusting your pricing strategy 6. Use Taxelyo to manage the transition smoothly