Important Changes to the Auto-Entrepreneurs' Regime in France

Following the Pinel Act of June 2014, some significant changes to the AE regime have been introduced at the end of 2014 and early 2015:

·       traders and artisans are now required to be registered with their local Chamber of Commerce or Industry or Crafts

·       this registration, of course, comes at a cost - ranging from 0.007% to 0.044% based on turnover

·       there is now a mandatory requirement to attend 30 hours of "training" provided by these Chambers at a typical cost of 260€

·       for 2015 there is a reduction and harmonisation of the levels of cotisations:

 

       - 13,3 % pour les activités d'achat revente,
- 22,9 % pour les prestations de services commerciales et artisanales,
- 22,9 % pour les activités libérales relevant du régime de retraite du RSI,
- 22,9 % pour les activités libérales relevant du régime de retraite de la Cipav  

·       except in the year of commencement, AEs are now subject to the CFE tax which is levied by their local commune and varies from commune to commune

·       all AEs must now operate a dedicated bank account for their AE activity

·       certain artisans must state, on their estimates and invoices, their professional insurance policy number

·       access to training is now conditional upon payment of cotisations

·       for 2016 there will be a merging of the different types of existing micro-regime under the title of micro-entrepreneur