Law of November 3, 2025 to guarantee a stable, fair and readable tax framework for micro-entrepreneurs and small businesses

This law repeals the reform of the VAT basic exemption threshold (franchise en base de TVA) that had been introduced by the 2025 Finance Law. The reform, which specifically affected auto-entrepreneurs (self-employed individuals under the micro-enterprise regime), had already been suspended by the government before this law formally abolished it. The VAT basic exemption (franchise en base) allows small businesses and self-employed individuals below certain revenue thresholds to be exempt from collecting and remitting VAT. The 2025 Finance Law had modified the rules of this scheme in ways that created uncertainty and burden for micro-entrepreneurs, prompting the government to first suspend its application and now leading parliament to permanently repeal it. By scrapping the reform, the law restores the previous VAT exemption framework that micro-entrepreneurs and small businesses were familiar with, providing regulatory stability and predictability for this segment of the economy. The measure is framed as protecting the viability and simplicity of the auto-entrepreneur regime, which covers millions of self-employed workers in France.

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