Overview
- Budget Minister Amélie de Montchalin said the measure will be left out of the final 2026 budget after both the National Assembly and the Senate rejected it.
- The shelved plan sought to cut VAT exemption thresholds from €37,500 for services and €85,000 for commerce to €25,000.
- An interim compromise floated in the draft kept a general €37,500 threshold while setting €25,000 for building‑sector micro‑enterprises.
- Officials had estimated about €780 million in yearly revenue from the change, with roughly half flowing to the State.
- The special budget law is due before both chambers on December 23 with debates potentially resuming January 5, and President Emmanuel Macron has urged a swift vote.