The auto-entrepreneur becomes a micro-entrepreneur As of 1 January 2016, new entrepreneurs subject to the tax regime for micro-enterprises are subject to the micro-social regime.
Auto-entrepreneurs exercising their activity on 31 December 2015 are not affected by this change: for them, nothing changes except the name!
This new status allows anyone to create individual business, under the tax system of micro-businesses :
commercial or artisanal activity (under the RSI)
a professional activity (within the CIPAV for pensions insurance)
The micro-entrepreneur activity is suitable for:
a person who wishes to test a project
a principal activity for jobseekers
an employee, civil servant or as a complement for retirement
It is possible to pursue a self-employed agricultural activity and become micro-entrepreneur under a non-agricultural activity. The person is subject to and contributes to each plan (MSA and RSI) which correspond to the activity carried out.
It is not possible to exercise both as an activity of independent and micro-entrepreneur:
An activity with independent status.
An independent business activity outside the scope of the micro-tax system
Some activities can not be carried out as a micro-entrepreneur:
Real estate agents
Renters of unfurnished buildings for professional use.
Lessors of equipment and durable consumer goods.
To benefit from the micro-entrepreneur status, turnover must not exceed a certain threshold:
€ 82,200 excluding VAT for a purchase / resale activity, making products from raw materials (bakery, sewing, jewelry making), sales for consumption on premises or take away, accommodation services (hotels, guest rooms Tenancies unfurnished accommodation).
€ 32,900 excluding VAT for commercial services (selling intangible products such as computer programs, music etc), for craft services (construction work, repair of products provided by customers), rental of furnished residential accommodation, services, relevant to the CIPAV (translation, consulting etc.)
*Turnover HT is the amount of goods, manufactured products and rendered services.
For the first year, the thresholds take into account the duration of the activity.
Example for a start activity on 1 May in services:
32 900 x 245/366 = € 22,023 the threshold is not exceeded
In case of joint activity (sales and services) the overall turnover must not exceed € 82,200 and the turnover relating to services € 32,900.
The micro-entrepreneur does not charge VAT. In return, they do not recover VAT on purchases made. Invoices must be marked “not applicable to VAT – Article 293 B of the Tax Code.”
If thresholds are exceeded, the status is retained if the annual turnover does not exceed € 90,300 (sales) or € 34,900 (service delivery).