Hello, I don’t see any topic about lowering VAT thresholds for self-employed individuals and sole proprietorships, which there must be quite a few of here, as the opportunity is highly conducive to it.
An example:
€36,000 annual turnover = €7,200 VAT to be paid.
If you take 50% profit from your turnover, that’s €18,000, or €1,500 per month after tax. Not a lot, but you can live on it.
However, if we have to deduct €7,200, we drop to €10,800, or a monthly salary of €900.
That’s 40% less at once, on a salary.
Deduct any VAT on your purchases.
To have an equivalent salary with the addition of VAT, you need a multiplier of 10 on the product sold.
Product bought for €10, sold for €100, that gives:
€100 - €20 VAT - €10 purchase - €14 charges - €15 miscellaneous (travel, stationery, phone, CFE, accountant + management software, and so on).
that is to say?
there is a petition, demonstrations, videos on YouTube on the FNAE channel where everyone explains their life and their opinion and the consequences. not easy to watch, so many lives, projects, passions, commitments that risk being destroyed.
A small clarification, I believe you pay VAT on the HT (Hors Taxe - before tax).
In your example, 36,000 euros including tax
30,000 euros before tax
6,000 euros VAT
Then you deduct the VAT from your purchases.
It’s a small clarification that of course doesn’t change the problem much
What changes is that your URSSAF contribution is based on €30,000 excluding tax and not the current €36,000.
This means a 16.7% decrease in contributions, therefore a decrease in your sick pay, pension, etc., for what it’s worth.
I also checked the law in question, it would be retroactive, so if you have more than €25,000 in turnover in 2024, you would have to pay 20% on it = certain death.
When buying from individuals, you can forget about VAT (the principle of Vinted, Le Bon Coin, eBay).
Hello, I hope I misunderstood, if we exceeded 25k in 2024, will we have to pay VAT for the year 2024 or will VAT be applicable the following year directly because the 25k threshold was exceeded the previous year? Thank you for the clarification as it changes a lot.
What changes is that your URSSAF contribution is based on €30,000 excluding tax and not the current €36,000.
If you don’t increase prices, theoretically, you should keep the €36,000 excluding tax and add VAT. In theory, in practice, it will be more complicated, of course.
I also checked the law in question, it would be retroactive, so if you have more than €25,000 in turnover in 2024, you would have to pay 20% on it = certain death.
This is still the thing that’s seriously problematic. In a group, a seller told me she had made €25,060 in turnover, so naturally, she was extremely upset. This point has a high chance of being challenged in administrative court/State Council or even the Constitutional Council.
the constitutional council, there’s a secretary of state who has just been appointed there; the president was appointed by whom we know. It’s the same people. It just gives the appearance of a safeguard.
And for clarification, it’s not 25K but 24K for 2024.
Yes, there are also those who make quotes for the end of the year, for example. They cannot do it again with VAT on top.
And then they will put 15,000, then they will put it for everyone, then they will add another tax, they don’t care about the consequences, for that and everything else. when everyone understands that it’s a crusade of the rich against the poor, we will have moved forward a step.
After that, they will tap into PEL, livret A, create fictitious rents for homeowners, a tech inspection for bicycles, a car inspection every year, and so on, and so on.
And the more debt there is, the more they earn, since those who lend are the same ones who already receive untaxed dividends (Holding).
I’m not even talking about the media owned by the same people as well as US social networks which are starting to censor quite a bit.
There is also the ZFE, a bomb, this thing.
Hello,
it will be a real mess for me too if the threshold goes up to 24K… besides, I don’t understand why they want the same threshold for everyone? monthly expenses for supplies for those who provide services are not the same as for us in buying/reselling…
Will we be able to reclaim VAT on our purchases?
I had chosen the micro-enterprise status for simplicity in accounting… it’s getting complicated at all levels and it’s not great.
Vast subject. For your purchases, it depends. If it’s from professionals, yes.
Not on fuel. Renting a space from an association or an individual, no. Purchasing equipment or stock from an individual, no.
Don’t forget you’ll need an accountant, between 500 and 800 euros per year, and certified accounting software.
11 amendments have been submitted, which will be voted on tomorrow in the assembly. I advise you to write to your representative as soon as possible. The list is on Facebook.
Done. Thanks for the info.
Strange to think that my life and those of thousands of others depend on one guy.
Ian Boucard: In June 2020, the criminal court of Besançon definitively sentenced[9] Ian Boucard to a fine for « misappropriation of voters’ ballots by fraudulent maneuvers »[[Fraude électorale — Wikipédia]], while the prosecution also requested three years of ineligibility[10],[11].
Good evening. I am a sole proprietor and do not pay VAT. The VAT exemption threshold of €37,500 is for service providers (physiotherapists, hairdressers, dog walkers, those who sell a service). For merchandise sales, it is €85,000. When selling on platforms, you must not exceed a turnover of €85,000. So you have to get there first… So rest assured.
it’s getting complicated at all levels and it’s not great.