2010 was an eventful year for auto entrepreneurs, with new laws trying to regulate this new regime and unexpected tax such as CFE. Several changes were voted in the loi de finance 2011, here is a summary of changes impacting your auto-entrepreneur business in 2011:
New auto entrepreneur turnover threshold
From 1st January 2011, the turnover threshold for sales of goods, supply of food and accommodation (hotels, cottages, country houses, furnished accommodation, ...) has increase to 81,500€ . The turnover for services providers has increased to 32,600€. For mixed activities with sales and services, the overall maximum turnover is 81,500€ with a maximum of 32,600€ for services and the remaining 48,900€ for sales.
Prorata rule maintained for auto-entrepreneurs
The turnover threshold is considered for a full calendar year. Auto-entrepreneurs registering their business along the year will therefore have a lower threshold calculated according to their starting date. For instance a translator starting on 10th February 2011, would have a maximum turnover for 29,028€ in 2011. Calculate your maximum turnover with the APCE’s auto entrepreneur turnover threshold simulation tool (read paragraph entitled - Les seuils applicables la première année d’activité).
Compulsory turnover declarations
As of 1st January 2011, auto-entrepreneurs must report their sales every month or quarter, including when the amount is zero or neant in French.
Introduction of the Cotisation a la Formation Professionnelle (CFP)
Auto-entrepreneurs are now liable to the Cotisation a la Formation Professionnelle or profesional training tax, representing 0.3% of the turnover for artisans (crafts), 0.2 % for services and , 0,1% for trade. The only exemption will apply to auto-entrepreneurs with an income below 4,740€ in 2011. ACOSS, the national agency regrouping all URSSAF offices has not clarified yet how this tax will be implemented.
Opting for income tax paid at source
The auto-entrepreneur system enables you to pay your income tax at source, rather than one year down the line with the income tax form. You may opt for regime micro fiscal, also called impot liberatoire, provided your income for 2009 was below 26,030€ for a single person. This income is applied per person or by part de quotient familial, which is the reference taken by impots. A married couple for instance would have 2 parts, and could therefore register an auto entrepreneur each if their joint income was below 52,060€.
Auto entrepreneur activity limited to 2 years
Auto entrepreneurs without any activity for 2 years, i.e no turnover declared, will be automatically switched to a standard entreprise individuelle regime. Social charges will then be calculated on a set amount or forfait based roughly on 3,000€ for the first year.
Domiciliation can be used as official address
Domiciliation is a service enabling you to rent an official business address (provision of a registered office address, postal mail redirected, etc). Auto-entrepreneurs can now use a domiciliation, provided they register their business on the Registre du Commerce et des Societes (RCS) or Registre des Metiers (RM). This registration may cost between 60€ to 200€.
CFE exemption for 3 years
All auto-entrepreneurs are exempt from Contribution Fonciere Economique for their first 3 years in business, whatever the level of their turnover.