The VAT exemption scheme for the self-employed
Updated July 2026
The VAT exemption scheme relieves small self-employed people (annual turnover ≤ €25,000) from charging VAT: invoices without VAT, no periodic returns. In return: no deduction of VAT on purchases. Ideal to start light — to reassess as soon as turnover grows.
What is the VAT exemption scheme?
It's a simplified scheme for small businesses. If your annual turnover does not exceed €25,000 (excl. VAT), you can invoice without VAT and you are exempt from periodic VAT returns.
In short: your invoices carry no VAT (with a mandatory legal mention), and you have far less admin.
Who can benefit?
- The self-employed, as a main or secondary activity, whose annual turnover stays under the €25,000 threshold
- Small structures starting out or with low volume
- Some activities are excluded from the scheme (for example certain specific sectors). Check your case with the tax authorities or your accountant.
The advantages
- Simplicity: no periodic VAT returns to file
- A more attractive price for a private-individual clientele (no VAT added)
- A light start, with minimal obligations
The drawbacks
- No deduction of VAT on your purchases and investments (equipment, vehicle, materials)
- A mandatory mention on every invoice
- Little benefit if you mainly invoice professionals: they recover the VAT, so the "price" advantage disappears
- A threshold to watch closely all year long
The mention to put on the invoice
Under the exemption you do not charge VAT, but you must state it clearly. The invoice carries a mention such as "Special exemption scheme for small businesses" (article 56bis of the VAT Code). No VAT amount appears.
What if I exceed €25,000?
If your turnover crosses the threshold, you switch to the normal scheme: you then charge VAT and file returns. Anticipate this transition so you're not caught out — and remember you will then be able to deduct VAT on your purchases.
Exemption and 2026 e-invoicing
Beware a common confusion: being under the VAT exemption does not exempt you from e-invoicing. If you invoice other businesses (B2B), the Peppol 2026 obligation applies to you too. Your invoices are VAT-free, but they must be electronic and structured.
Frequently asked questions
What is the exemption threshold?+
An annual turnover of €25,000 excl. VAT. Above that, you move to the normal VAT scheme.
Can a secondary self-employed person benefit?+
Yes, the scheme is open to the self-employed as a main and secondary activity, as long as the turnover threshold is respected.
Can I deduct VAT on my purchases?+
No. That is the trade-off of the exemption: you do not charge VAT, but you also cannot deduct it on your purchases and investments.
Does the exemption exempt me from Peppol?+
No. If you invoice B2B, structured e-invoicing (Peppol) applies to you from 2026, even if your invoices are VAT-free.
Read also
VAT 6% or 21% on renovation: the clear guideVAT reverse charge in constructionB2B e-invoicing 2026: am I concerned?Start compliant, exemption included
Afrimo handles VAT-free invoices with the exemption mention, and switches cleanly to the normal scheme the day you grow — in FR/NL/EN.
This article is informational and does not constitute tax advice. Thresholds and conditions may change: check your situation with the tax authorities or your accountant.