As a sole trader, you benefit from a simplified tax regime. But simplified does not mean non-existent: you still have accounting obligations to meet.
The income record book
The main obligation of a sole trader is to keep an income record book. This document must chronologically record all income received: date, nature of the sale or service, amount, and payment method.
Unlike other regimes, you do not need to prepare an annual balance sheet or keep an expense journal (unless you have opted for EIRL status).
Declaring your turnover
You must declare your turnover each month or quarter — your choice at registration — on the URSSAF website. This declaration is mandatory even if your turnover is zero: you simply declare zero.
Social contribution amounts are calculated as a direct percentage of your turnover:
- 12.3% for goods trading activities
- 21.2% for artisan and commercial service activities
- 21.1% for liberal professions
Invoicing
Each sale must be accompanied by an invoice or receipt, kept for 10 years. Your invoices must include your SIRET number, your sole trader status, and the phrase "VAT not applicable" if you are under the VAT exemption threshold.
The VAT threshold
As long as your annual turnover remains below the base exemption thresholds (€91,900 for sales, €36,800 for services), you are not subject to VAT. Beyond these limits, you must charge and remit VAT to the tax authority.
Documents to keep
Keep all income receipts (client invoices, payment statements), your URSSAF declarations, and your income record book for at least 6 years for tax purposes, and 10 years for accounting documents.
