Two ceilings, two years

Worked example

Where Atelier Céramique Nolan stands

Its 34 000 € from last year stay under the 37 500 € ceiling applying to services for the previous calendar year: the exemption was secured on that first comparison. Its 39 000 € this year stay under the 41 250 € of the second row: the exemption has not ceased. But they exceed the 37 500 €: next year, the comparison with the previous year will fail, and the workshop will be liable to VAT from 1 January. The founder has therefore identified the right figure to watch — but the next module shows exactly what happens on the day it is crossed.