Paying URSSAF every month as an auto-entrepreneur: is a tax return still needed?

Yes. Micro-entrepreneurs (micro-entrepreneur, auto-entrepreneur) file an annual income tax return under both regimes. Without the versement forfaitaire libératoire, tax is paid in instalments (acomptes) based on the previous year's return, and turnover goes on form 2042 C PRO every year. With it, tax is paid to URSSAF alongside contributions, but the income is still declared once a year, without being taxed again.

Two regimes, one return in both cases

	Without versement libératoire (PAS)	With versement libératoire (VFL)	Source
How tax is paid	Instalments (acomptes) collected from the bank account by the tax office, monthly or quarterly, based on the previous year's income	A percentage of turnover, paid monthly or quarterly in a single payment with social contributions	entreprendre.service-public F23267
Annual return	Form 2042 C PRO, filed with the income tax return	Form 2042 C PRO as well: the income is declared twice, periodically and once a year	entreprendre.service-public F23267
What is taxed	Turnover minus a flat-rate allowance (abattement) of 71%, 50% or 34%	1%, 1.7% or 2.2% of turnover, with no allowance	entreprendre.service-public F23267; impots.gouv
Boxes on the online return	5KO, 5KP, 5NO, 5NP, 5NG, 5NH, 5NI, 5HQ	5TA, 5TB, 5TE	impots.gouv

What the URSSAF payments cover

A micro-entrepreneur falls under two schemes at the same time: micro-fiscal for income tax and micro-social for social contributions (cotisations sociales). Turnover (chiffre d'affaires) is declared both periodically (monthly or quarterly, as chosen) and once a year. Tax is only bundled into the same payment as contributions if the versement forfaitaire libératoire has been chosen. Otherwise, tax goes through the pay-as-you-earn system (prélèvement à la source), and the tax office (administration fiscale) collects the instalments directly from the bank account.

Standard regime: instalments plus an annual return

Instalments (acomptes)

Under prélèvement à la source, the micro-entrepreneur pays instalments that the tax office works out from the income on the previous year's return. They are collected monthly or quarterly, depending on the frequency chosen.

Flat-rate allowance (abattement forfaitaire)

Tax is charged on turnover minus a flat-rate allowance for expenses; actual expenses cannot be deducted. The allowance depends on the activity: 71% for selling goods and providing accommodation (BIC), 50% for services (BIC) and 34% for the liberal professions (BNC). Furnished holiday lets have rates of their own: for 2025 income, 50% if the property is rated (classé) and 30% if it is not. The allowance is never less than €305. Where there are several activities, each allowance applies to its own share of turnover and the minimum doubles to €610. What remains is taxed at the normal progressive income tax rates.

Form 2042 C PRO

The annual return is made on form 2042 C PRO, through the espace Finances publiques on impots.gouv.fr. It is filed once a year and covers all the income of the tax household (foyer fiscal), such as pay from another job or, on a joint return, a spouse's income. Gains or losses on selling assets used in the business are reported on it too.

Versement libératoire: tax paid with contributions

With the versement forfaitaire libératoire (VFL), tax and social contributions go out together in one monthly or quarterly payment. The tax is a fixed percentage of turnover before tax (CAHT): 1% for selling goods, food and drink, and accommodation (other than furnished lettings), 1.7% for other BIC activities and 2.2% for BNC. The income is therefore declared twice: periodically to URSSAF and once a year on form 2042 C PRO. The annual return does not lead to a second tax bill. It gives the tax office a full picture of the household's income and is used to set the reference tax income (revenu fiscal de référence). If turnover is zero, there is no tax and no contributions to pay, but the return is still required: the turnover box is completed with "néant".

What can change the answer

• Opting for the VFL. The request is made to URSSAF by 30 September of the year before the one in which it is to apply. A business set up during the year has until the last day of the 3rd month after it was created. Eligibility depends on the household's reference tax income for year N-2.
• Instalments after switching to the VFL. Choosing the VFL does not automatically stop the prélèvement à la source instalments. They are switched off in the espace particulier on impots.gouv.fr, under "Gérer mon prélèvement à la source".
• Turnover limits. For 2026 income, the micro-fiscal scheme applies if turnover before tax for 2025 or 2024 did not go above €203,100 (selling goods and accommodation) or €83,600 (BIC services and BNC liberal professions). Going over the limit two years running means leaving the micro-fiscal scheme, and with it micro-social and the VFL.
• No turnover. A micro-business is automatically deregistered if no turnover is declared for 24 months or 8 quarters in a row.

Who can confirm this

Entreprendre.service-public runs a Conseillers entreprises service that calls back within 5 days. The annual return is filed in the espace Finances publiques on impots.gouv.fr; the periodic declarations are made on autoentrepreneur.urssaf.fr.

About Fiscly

It is easy to think the monthly URSSAF payments already cover income tax and let the spring return slip. We went through this ourselves and built Fiscly for ourselves and for others who have moved here.

A questionnaire in six languages that ends with a step-by-step guide to the declaration.

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This material is for general information and does not replace individual advice.