The micro-enterprise regime is a tax system.

Characteristics of the micro-enterprise scheme

This scheme is characterized by the following elements:

A VAT-based franchise up to a turnover of € 82,800 or € 33,200: companies do not charge VAT to their customers and do not recover this VAT paid to their suppliers;

A standard abatement when calculating the company's profit;
Simplified accounting and reporting requirements;
No deficit possible: the individual farmer can not charge it against his overall income. The Bookkeeping Watson option is there.

Conditions of application of this tax system
Who can benefit from the tax regime of the micro-enterprise?

Small sole proprietorships (for example, traders in their own name, liberal professions, craftsmen).

Are excluded by right:

Legal entities subject to income tax (IR) or corporation tax (IS): SARL, EURL, partnerships, civil companies for example;
Leasing of equipment or durable consumer goods;
Transactions in a futures market for financial instruments (stock market transactions);
Non-profit organizations (associations);
Merchants of property, developers and builders, real estate agents.

Limit linked to the turnover

The benefit of this system is subject to the respect of a total amount of annual turnover realized by the company which varies according to the nature of the exploitation:

For operators whose main business is to sell goods, objects, supplies and goods to be taken away or consumed locally or for the supply of housing, the maximum turnover is fixed at 170,000 euros excluding taxes;
For service providers, the limit is 70,000 euros excluding taxes.

Plurality of commercial enterprises

If the same taxpayer operates several companies, the turnover of the various activities is combined to determine whether he can benefit from the micro-enterprise scheme. From the Bookkeeping Watson this is the smartest one.

This rule also applies if the merchant actually operates several businesses that can be classified as distinct because of the autonomy of the clientele and the nature of the benefits.

Each member of the same tax household can benefit from the micro-enterprise regime because of the activities he carries out.
Calculation of the turnover limit for companies whose activity is mixed

The VAT exemption

• Companies imposed under the micro-enterprise scheme are automatically entitled to a VAT exemption.

• This deductible allows the company not to charge VAT on deliveries or services to the final consumer.

However, the turnover thresholds for benefiting from the VAT-based deductible remain as follows:

For operators whose main business is to sell goods, objects, supplies and goods to be taken away or consumed locally or for the supply of housing, the maximum turnover is fixed at 82,800 euros excluding taxes;

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