Micro-entrepreneur tax: combining sales and service activities

Regulations governing the combination of activities in a micro-business

The micro-enterprise system offers a number of advantages and a degree of flexibility, particularly when it comes to legal, tax and administrative issues. Many liberal professions and most commercial and craft professions can be practiced under this status. However, it is not permitted to open several micro-businesses. Within a single structure, however, it is entirely possible to carry out different activities, with or without links between them.

However, double activity does not mean double sales ceiling. You need to define which activity is your main one. This choice determines the APE code, theCFE (Centre de Formalités des Entreprises) and the sales ceilings to be respected.

Dual activity can be known and registered as soon as you register as a micro-entrepreneur. But it can also be added at a later date via a modification request. Even if there is only one SIRET number, separate accounts must be kept for each of the micro-entrepreneur's activities.

Different trades in different sectors are therefore within the reach of the same person. A single sales declaration must then be filed with Urssaf on a monthly or quarterly basis, but a breakdown must then be made between several lines. Calculations of contributions, vocational training tax and payment in full discharge, where applicable, are then made automatically according to variable rates depending on the nature of the revenue.

Combining related and unrelated activities

Related activities

This is particularly true of self-employed contractors who supply their customers directly with the materials they need to carry out a service. These are very often artisanal professions, such as plumbers, roofers, carpenters and so on. These professionals buy and then resell the products they come to install. In this case, they have a dual role: shopkeeper and craftsman.

In this situation, the ceilings that must not be exceeded depend on the main activity, as follows:

• When the sale of goods is greater than or equal to the provision of services, the sales ceiling is set at €188,700, within which the sums relating to the provision of services must not exceed €77,700. This is a mixed activity.
• When services are more important than the sale of goods, the ceiling is set at €77,700 for the main activity.

Please note the last provision: if the commercial activity reaches the €103,700 ceiling, or an amount greater than the turnover for the provision of services, then it will be requalified as a principal activity.

Separate mixed activities

When the different professions exercised under the same micro-enterprise are not linked, the ceilings are based on the categories to which they belong. There are several possible scenarios:

• Either the separate activities fall into the same category, and sales remain capped at the threshold established for each sector, i.e. €188,700 and 12.3% social security contributions for two commercial activities, or €77,700 and 23.2% social security contributions for two craft activities or two liberal professions.
• Or the separate activities fall into different categories. In this case, the one that generates the most sales as the main activity determines the social security contribution rates and ceilings that must not be exceeded, as mentioned for related activities.

Taxation: tax returns for dual activity

It's important not to exceed the sales ceilings for dual activities, if you want to continue to benefit from the tax regime associated with micro-enterprise status.

When filing the annual income tax return, the amounts relating to each micro-enterprise activity must be broken down according to the corresponding regime:

• Artisanal and commercial professions fall into the category of industrial and commercial profits: BIC or micro-BIC;
• The liberal professions fall into the category of non-commercial profits: BNC or micro-BNC.

The profit is reported on form 2042 C Pro "Déclaration de revenus complémentaires des professions non salariées". The gross annual BIC and/or BNCsales, as well as any capital gains or losses for the year, but not expenses. The tax authorities then apply a flat-rate allowance for professional expenses, which varies according to category:

• In the BIC sector, the allowance is 71% of sales for sales activities and 50% for the provision of craft and commercial services.
• For self-employed professionals and non-commercial services, the allowance is 34% of sales.