Exceeding the thresholds by the auto-entrepreneur

For the taxation of income 2020, 2021 and 2022, the micro-enterprise regime continues to apply when the amount of tax-free revenue for the two preceding calendar years does not exceed the thresholds of the micro-enterprise regime, namely:

  • € 176,200 for trade and housing supply activities (hotels, guest rooms, rural lodgings classified as tourist accommodation, tourist accommodation).
  • € 72,500 for the provision of services and liberal professions falling under BNC or BIC.

If thresholds are exceeded over two consecutive calendar years, the entrepreneur out of the micro-enterprise regime as from 1st January following the two years exceeded.

To assess whether the limits of the micro-enterprise regime are exceeded during the year of creation, the thresholds must be adjusted in proportion to the time of operation of the enterprise or exercise of the activity during the year of creation. Exceeds the thresholds under the first calendar year of operation does not cause the output of the micro-enterprise regime as from 1st January of the following calendar year, because the output comes after exceeding two consecutive calendar years.

Example: An entrepreneur within the BNC starts operations on 1st of July. The threshold to be taken into account to note an overrun corresponds to the threshold of the micro-enterprise regime divided by two.

The auto-entrepreneur exceeds the thresholds for the first time

The auto-entrepreneur who exceeds the thresholds of the micro-enterprise scheme for the first time remains in the micro-enterprise scheme for the following calendar year. Exceeding therefore has no consequences for the self-employed person.

The auto-entrepreneur exceeds the thresholds for two consecutive years

The entrepreneur, whose revenues exceed the thresholds of the micro-enterprise regime of two consecutive calendar years, is excluded from micro-enterprise regime as from 1st January of the calendar year following the two years exceeded. The consequences are as follows:

At the level of the taxation of profits: The micro-enterprise regime continues to apply until the end of the second calendar year of overrun. Switching to simplified tax regime real or actual speed normal tax option, on or after 1st January of the year following the overrun. Go for the use of the tax calculator there for proper calculation.

At the level of the final payment of IR: Continuation of the final payment of tax until the end of the second calendar year of overrun. It ends at the same time as the micro-enterprise scheme.

At the level of VAT: as of the 2017 income tax, the thresholds for the micro-enterprise regime are no longer aligned with those for the VAT-based exemption. The consequences are therefore assessed separately. A micro-entrepreneur may be subject to VAT.

At the level of social contributions: continuation of the simplified micro-social system until the end of the second calendar year of overrun. From 1st January of the following year, contributions will be calculated according to the common rules.

In terms of accounting: end ultra-simplified obligations (holding a book of recipes and, as appropriate, of a register of purchases) from 1st January of the year following the two consecutive calendar years overtaking.

Conclusion on the exceeding of the thresholds by the auto-entrepreneur

If the thresholds are exceeded over two consecutive years, the auto-entrepreneur is not subject to any retroactive effect. When it is a first overrun, regardless of its magnitude, the self-employed person can continue to benefit from the micro-enterprise scheme for the following year.

From 1st January of the year following the loss of the microphone system, the entrepreneur who founded his company in individual must join a CGA or an AGM , including to avoid tax imposed by supporting an increase 25% of its taxable profit.

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