Auto-entrepreneur turnover limit to be introduced in 2015

By Valérie Aston on 13 June 2013 · Viewed 5656 times · Questions

The Conseil des Ministres met yesterday and Sylvia Pinel presented the reform adopted by the government for the auto-entrepreneur regime. The key measure announced is the creation of intermediate turnover thresholds of 19,000 euros for services (artisans and professions liberales) and 47,500 euros for trade. Sylvia Pinel justified the auto-entrepreneur reforms by stating the auto-entrepreneur system has distorted competition, particularly for artisans and is being used as disguised employment.

For auto-entrepreneur's who do not exceed the intermediate thresholds of 19,000 euros for services and 47,500 for trade, the system will remain unchanged.

Auto-entrepreneurs going over the intermediate turnover thresholds for two consecutive years will have to switch to a standard business regime, for example regime reel simplifie or micro entreprise. If turnover returns below intermediate turnover thresholds within 2 years, the entrepreneur would be allowed to stay within the auto-entrepreneur regime. The auto-entrepreneur going over the intermediary turnover thresholds would have to meet with a professional advisor within 6 months, in order to discuss options for the new business structure.

Mme Pinel stated that the auto-entrepreneur moving to a new business regime would benefit from a transition period, during which a smoothing of social security contributions and taxation will be implemented in order to limit the impact cash flow. No extra information was provided as to how this dispositive de lissage would be implemented.

The reform would also make it compulsory for auto-entrepreneurs to provide proof of their qualifications at the time of registering their business. It would also become compulsory to have liability insurance, which would have to be mentioned on business documents, e.g. quotes, invoices etc.

Mme Pinel confirmed that a bill will be presented to the Conseil des Ministres by the end of July and presented to Parliament in the autumn. The reforms will be applicable from 1 January 2015.

Watch Mme Pinel’s announcement on the auto-entrepreneur reform.

Valerie Lemiere: Start Business in France

About the author: Valérie Aston

I've been helping people who want to start or already have a small business set up in France since 2009. After graduating from a Master of Business Administration (MBA) degree, I worked as a senior marketing consultant in the UK and France for various International companies. I worked as a conseillère en création d'entreprises (senior business advisor) for BGE here in France and run this independent business on a daily basis.