National regimes

Auto-entrepreneur / micro-entrepreneur (France)

Regime specific to France

The French simplified status for sole traders: contributions and, optionally, income tax paid as a percentage of turnover, with VAT exemption under the franchise thresholds.

What Auto-entrepreneur / micro-entrepreneur (France) means

The micro-entrepreneur, still widely called auto-entrepreneur, is a French sole trader who benefits from the micro-social and micro-fiscal regimes. Social contributions are paid monthly or quarterly as a fixed percentage of the turnover declared to URSSAF, with different percentages for sales of goods, commercial services and liberal professions. Income tax is either calculated on turnover after a notional expense allowance or, on option, paid as a small additional percentage with each declaration (versement liberatoire).

Turnover ceilings apply per activity type, and the VAT franchise en base exempts the business from VAT up to separate thresholds, above which VAT must be charged while the micro status can continue. Bookkeeping is reduced to a chronological register of receipts and, for traders, of purchases. A dedicated business bank account is required above a turnover level. Kontevia supports the register, the URSSAF declaration figures and the switch to VAT when the franchise is exceeded.

This is a national regime of France. Other EU countries have their own equivalents; see small business scheme and flat-rate scheme.

Related terms

Flat-rate schemeA simplified tax regime where tax is calculated as a percentage of turnover or a fixed amount, instead of from actual profit or VAT records.Small business scheme (VAT exemption)A simplification that exempts businesses under a turnover limit from charging VAT, filing regular VAT returns and deducting input tax.Sole trader (self-employed)An individual running a business in their own name with unlimited liability. The simplest legal form, taxed under personal income tax.Social security contributionsMandatory payments for pension, health and other insurance schemes, paid by employers, employees and the self-employed under national rules.

This entry is general information, not tax advice. Rules change; check the current position with your adviser or the tax authority of your country.

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