Penalty fees for auto-entrepreneurs

By Valérie Aston on 4 January 2012 · Viewed 9588 times · Questions

From 1st January 2012, auto-entrepreneurs and micro entreprises having opted for the micro-social regime will be liable to a new penalty fee, if they forget to complete their turnover declaration. Turnover declarations were already compulsory in 2011, with auto-entrepreneurs having to declare 0 euros if no sales were made for the month or quarter.

The compulsory turnover declaration has however been strengthened with the 2011 Social Security Budget Act (loi de financement de la sécurité sociale). An implementation decree published on 28th December 2011 in the Journal Officiel confirms that penalties fees will apply to auto-entrepreneurs forgetting to declare or making their declaration past the deadlines. Here is how the new auto-antrepreneur penalty fee works:

1. Compulsory turnover declaration even if no sales

Auto-entrepreneurs have to complete their turnover declaration each month or each quarter, whether or not they have made a sale. Auto-entrepreneurs with no sales for that period must indicate néant (none) or 0 euros. As a reminder, the quarterly turnover deadlines for 2012 are set for 31st January, 30th April, 31st July and 31st October.

2. Penalties fees for failing to declare or past the deadline

The auto-entrepreneur turnover declaration deadlines are set according to the frequency chosen when registering your business. This can be  either monthly or quarterly. In case of a late declaration or missing declaration, you will be liable to a penalty fee equivalent to 1.50% of the current monthly social security ceiling called plafond de securité sociale rounded to the euro higher. This means for 2012 a penalty fee of 45 euros, i.e. 3031 euros x 1.50%.

3. Increased contributions in the event of repeated delays

When several turnover declaration deadlines have not been met in the year, social charges contributions will be calculated directly by URSSAF on an interim basis à titre provisoire. The contribution will be calculated on a quarter or a 12th of your turnover ceilings. For instance a profession libérale with a turnover threshold of 32,600 euros, having opted for a quarterly declaration, the automatic contribution will be (32,600 / 4 x 18.3%) plus a penalty fee. This additional penalty fee is of 15% for monthly declaration and 5% for quarterly declaration. You will be notified of this automatic social charges contributions by registered letter.

4. Automatic exit of the auto-entrepreneur regime

For the record, an entrepreneur declaring a turnover equal to zero for 24 consecutive months (or eight quarters) can no longer benefit from the regime micro social. The decree published on 26th December 2011 confirms that the loss of the auto-entrepreneur regime will be notified by registered letter. You will then have one month to appeal this decision.

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.