France's 2025 finance law cuts the VAT franchise en base to a single €25,000 threshold from 1 March 2025

What changed in detail

Article 32 of Loi n° 2025-127 du 14 février 2025 de finances pour 2025, published in JORF n°0039 of 15 February 2025, amends Article 293 B of the Code général des impôts, which sets the VAT franchise en base for businesses established in France.

• The table in I is replaced by a single turnover ceiling, whatever the activity: €25,000 for the previous calendar year and €27,500 for the current year.
• II, which held the separate ceilings for lawyers, authors and performing artists, is replaced by a single rule: once the current-year ceiling is exceeded, the franchise stops for operations from that date. The former III is repealed, and the cross-references in Articles 293 B bis and 293 D are adjusted.

Under II of Article 32, these changes enter into force on 1 March 2025, except 1° (a change to Article 231 on payroll tax), which enters into force on 1 January 2026.

The same article also applies the standard rate to energy-renovation and improvement works that include supplying or installing a boiler able to use fossil fuels, with a carve-out for quotes accepted and deposits paid before 1 March 2025.

What it means

This threshold never settled. Loi n° 2025-1044 du 3 novembre 2025 rewrote Article 293 B again and applied the result retroactively from 1 March 2025, restoring the €85,000 / €37,500 ceilings and the separate ceilings for lawyers, authors and artists (fr-franchise-tva-midy-repeal-2025). The €25,000 single threshold is therefore not the law for any period. A business that registered for VAT because of it should check how the retroactive restoration affects its 2025 position. The boiler measure in the same article was not touched by the 2025 law.