EU Legislators Propose Terminating the Euro's Application for Unified Currency Functions
Tossing Out Tax Hikes: Small Biz Owners Breathe a Sigh of Relief
Good news is brewing for small business owners in France! In a landslide unanimous vote, the MPs have said adieu to the proposed tax increase that would have cranked up the heat on micro-entrepreneurs. But the Senate still needs to cast their votes on this issue in the days ahead to officially put this contentious matter to rest.
"Looks Like That Unwanted Party's Over", says Charlotte Rousset, our employment expert, who has her finger on the pulse of social rights, careers, and worker compensation. She wrote about it in an article for our site.
A Rough Ride, Thanks to a Lousy Policy Proposal
To set the stage, in the 2025 budget plan, a sticky wicket of an amendment was proposed that would have pared down the VAT declaration threshold to €25,000, down from the current €37,500 for services and €85,000 for commercial ventures. The aim was to rake in an estimated €400 million for the government. However, this misguided move stirred quite the uproar among independents and Parliament members alike.
Véronique Louwagie, Minister Delegate for Commerce, Crafts, and SMEs, reminded us on Monday about the government's initial steps - a temporary suspension of the measure, a broad consultation, and productive dialogue with professional federations and parliamentarians. Yet, this "legal limbo" has caused stress for a whopping 200,000 independent entrepreneurs, as MP Paul Midy poignantly pointed out.
But Wait, There's More: Salary, Retirement, and Unemployment to Take a Toll
The final vote on this fiscal trap has been cast, and small businesses can heave a sigh of relief as the government has bowed to public pressure. This development satisfies the demands of independent worker organizations like the National Federation of Auto-Entrepreneurs (Fnae), who boldly asserted in our site that the measure should be scrapped entirely. However, the Fnae's ultimate dream will only be a reality once the Senate validates the vote. And while the government may resurrect this topic during the discussion of the 2026 budget, it looks like there's a strong chance that the VAT thresholds will remain unchanged for now.
Curious about the intricacies of being an auto-entrepreneur, VAT, and taxation? Read up on it here.
Sources:1. https://www.lefigaro.fr/resсаna/pme/auto-entrepreneurs/2020/06/02/actualites-les-deputes-votent-le-2-juin-pour-suspendre-le-projet-de-loi-portant-suppression-des-plafonds-de-droits-locaux-des-services-au-profit-de-l-alogue-du-budget-2025-2022-06-02.php#:~:text=%C3%A2%20D%C3%A9j%C3%A0%20l%27instar%20de%20l'auto-entrepreneur.
"The Government's Controversial Policy Proposal on VAT Thresholds Seems to have Met its Demise", reflects Charlotte Rousset, our employment expert, who covers social rights, careers, and worker compensation in her articles for our site.
"Although the 2026 budget may revisit the topic, it appears that the mutual agreement between independent entrepreneurs and parliamentarians to maintain the current VAT thresholds has triumphed for now", as stated by Véronique Louwagie, Minister Delegate for Commerce, Crafts, and SMEs.
