Small Business VAT Exemption: Who Qualifies and What You Get
Learn if your business turnover qualifies you for the Small Business VAT Exemption and how to manage your invoices correctly.
This scheme allows certain small businesses to operate without charging Value Added Tax (VAT) on their services.
Who it's for
This is available to businesses whose annual turnover remains below a specific threshold of €36,800.
What you get
If you qualify, you do not have to charge VAT to your clients or collect it on your behalf. This can make your services more affordable for your customers since the tax is not added to the final price.
What it costs you
While there is no monetary cost to join the scheme, you have a strict administrative requirement. Every invoice (facture) you issue must include a specific legal mention: "TVA non applicable, art. 293 B du CGI".
The catch to know
This exemption is not permanent if your business grows. If your turnover exceeds the set limit, you are required to register for VAT immediately.
How to apply
- Monitor your total annual turnover closely.
- Ensure your business falls below the €36,800 threshold.
- Update your invoice templates to include the required legal text.
- Contact the relevant tax authority if your turnover exceeds the limit.