Complete Guide to the Auto-Entrepreneur Regime in France (2025)

/in /by

The auto-entrepreneur status in France is a simplified business structure designed for individual entrepreneurs. It falls under the micro-enterprise tax regime and the micro-social scheme for paying social contributions. This setup aims to make business creation and administration easier, while also offering key benefits:

  • Streamlined administrative processes

  • Simplified calculation and payment of social charges and income tax (if opting for the liberatory tax payment)

  • Social protection (health, retirement, etc.)

  • Access to professional training

For a full overview, visit the official URSSAF portal.

Who Can Become an Auto-Entrepreneur?

To be eligible for the auto-entrepreneur status, one must:

  • Be at least 18 years old (or an emancipated minor)

  • Reside in France

  • Be a French or EU national (non-EU citizens may qualify under specific conditions)

  • Not be under guardianship or legal restriction

  • Not be legally barred from managing a business

You can combine this status with being a student, employee, retiree, company executive (under certain conditions), or civil servant (depending on permissions).

Important: The auto-entrepreneur scheme cannot be used in situations of subordination, i.e., where a person works under the authority and conditions set by a client/employer. (See Cass. Soc. 13 Nov. 1996, n° 94-13187).

Turnover and Social Contributions: taxe auto entrepreneur

Auto-entrepreneurs pay social contributions based on their gross turnover (HT), not on their profits.

Includes:

  • Total income received (not billed)

  • Any tips received (they are taxable and subject to contributions)

  • Profit margin is irrelevant to calculation

Turnover Thresholds for 2025

  • €188,700 for sales and accommodation

  • €77,700 for services (BIC/BNC)

  • Mixed activities must meet both conditions:

    • Combined total under €188,700

    • Services portion under €77,700

For CIPAV-affiliated liberal professionals: €77,700 max turnover.

Thresholds are prorated for activities started mid-year. E.g., starting March 1, 2024 (306 days), the threshold is €64,962.

Exceeding limits two consecutive years moves you to the real tax regime.

Legal references: CGI Article 50-0, 102 ter; Social Security Code L613-7 to L613-10

VAT Exemption Rules

If you qualify for VAT franchise, you do not charge or recover VAT.

New 2025 thresholds:

  • €85,000 for goods sales

  • €37,500 for services

Crossing upper thresholds leads to immediate VAT liability:

  • €93,500 for goods

  • €41,250 for services

Invoice Note: “TVA non applicable – article 293 B du CGI”

Once VAT-liable:

  • Register for an intra-community VAT number

  • Add VAT to your invoices

  • You can deduct input VAT

More details: URSSAF overview on the auto-entrepreneur status

Income Tax: Optional Liberatory Payment

You can opt for withholding income tax when registering or within 3 months by notifying URSSAF. Rates:

  • 1% for sales/accommodation (BIC)

  • 1.7% for commercial services/furnished rentals (BIC)

  • 2.2% for liberal services (BNC)

Eligibility based on reference income from 2 years prior.

Once chosen, the tax is final and non-refundable.

Annual Income Declaration: taxe auto entrepreneur

Whether or not you chose the liberatory tax, you must:

  • Declare turnover in Form 2042-C-PRO (no actual expenses deducted)

  • Use abatement rates:

    • 71% for goods

    • 50% for commercial services

    • 34% for liberal professions

Monthly or Quarterly Declarations: taxe auto entrepreneur

Even with zero income, you must file your return monthly or quarterly. Your first return is due at least 90 days after registration.

For a clear explanation on tax identification in France, check our guide: Tax Identity in France: Understanding TINs

Registration: What You Need to Know

  • Free registration online via Guichet Unique

  • Avoid unofficial paid sites

  • Choose quarterly or monthly declaration frequency

  • Use the “AutoEntrepreneur Urssaf” mobile app

  • Submit declarations from the day of notification

Sector-Based Social Contribution Rates

Activity TypeSocial Contribution Rate
Goods sales (BIC)12.3%
Services incl. rentals (BIC)21.2%
Other services (BNC)24.6%
Liberal professions (CIPAV)23.2%
Classified furnished tourist rentals6%

Note: No turnover = no tax or contribution due.

Optional Minimum Contributions

To enhance social coverage, you can opt to pay minimum contributions, calculated on a theoretical income base. You will then leave the micro-entrepreneur scheme and enter the classic self-employed regime.

Professional Training Contribution (CFP): taxe autoentrepreneur

Only if turnover was positive in the last 12 months:

SectorCFP Rate
Artisan0.3%
Trader0.1%
Liberal Prof.0.2%

Chamber of Commerce and Craft Fees

Charged starting Year 2 if prior turnover > €5,000:

ActivityRate
Service provision (CCI)0.044%
Craft services (CMA)0.480%+
Goods, food, lodging (CCI)0.015%

Business Property Tax (CFE)

Due annually from Year 2 (exempt in year of creation). Exempt if turnover < €5,000 two years prior. Minimum CFE depends on location and prior revenue.

Additional Legal & Administrative Requirements

  • Dedicated Bank Account: Mandatory after 2 years of turnover > €10,000

  • Use “Entrepreneur individuel” or “EI” on all official documents

  • Insurance: Civil liability and specific coverage depending on profession

  • Mediation System: Required when working with consumers

  • Mandatory Registrations:

    • Crafts & liberal professions: RNE

    • Traders: RCS + RNE

    • Some trades require qualifications or proof of experience

Scams to Avoid

  • Official procedures are free. Avoid unofficial services charging fees.

  • Ignore misleading commercial solicitations.

  • Be wary of phishing emails mimicking official entities.