Sole Trader, EI, SASU: Which Legal Status for a VTC Driver in Réunion

Legal status shapes your taxation, social contributions, accident protection, and your ability to hire or sell your business. In Réunion as in mainland France, 90 % of VTC drivers start as micro-entrepreneurs. But this status has a cap, and it is not always the most profitable. Here is how to choose, and most importantly, when to switch.

Table of contents

• The four statuses relevant for a VTC
• Micro-entreprise: the default starter
• Entreprise individuelle (EI)
• SASU and EURL: the company route
• Comparison table
• When to change status
• URSSAF, VAT, declarations
• FAQ

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The four statuses relevant for a VTC

For an independent VTC driver, four options dominate:

1. Micro-entreprise (sole trader): simplified regime, €77,700 revenue cap
2. Entreprise individuelle (EI) at real regime: no cap, real social charges, deductible expenses
3. EURL: single-shareholder company, IR or IS taxation on option
4. SASU: single-president company, IS taxation by default, assimilated-employee status

EIRL no longer exists since 2022 (merged with EI). Multi-shareholder companies (SARL, SAS) are rare for a solo driver, but relevant if you build a "fleet company" with multiple vehicles.

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Micro-entreprise: the default starter

It is the simplest and most-used status by beginning VTC drivers in Réunion.

Characteristics:

• Revenue cap: €77,700/year (BIC services)
• Social charges: 21.2 % of revenue (optional liberatory IR: +1.7 %)
• No VAT collected (franchise up to €36,800 revenue, then liability)
• Professional expenses NOT deductible (fuel, lease, insurance...)
• Ultra-simplified bookkeeping: a receipts ledger
• Quarterly or monthly online URSSAF declaration

Advantages: registration in 1 day on autoentrepreneur.urssaf.fr, charges proportional to revenue (zero revenue = zero charge), predictable cashflow, ideal for risk-free start.

Major drawback: expenses are not deductible. If your real charges exceed 40 % of your revenue (typical for a driver with lease and fuel), micro costs you more than an EI at real regime.

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Entreprise individuelle (EI) at real regime

Historical status relaunched in 2022 with automatic personal/pro asset separation.

Characteristics:

• No revenue cap
• TNS (Non-Salaried Worker) social charges: ~35-40 % of profit after deductions
• Fully deductible professional expenses: fuel, lease, maintenance, insurance, phone, training
• VAT collected and deductible
• Mandatory real bookkeeping (journal, general ledger, balance sheet)
• Annual declaration (form 2042-C-PRO)

Advantages: no cap, expense deduction (which often represent 40-55 % of VTC revenue), VAT recoverable on vehicle purchase.

Drawbacks: heavier bookkeeping (accountant ~€80-150/month), more complex social charges to anticipate, complicated first year (provisional flat rate).

EI at real regime becomes profitable as soon as your real expenses exceed micro''s flat-rate deduction (50 % for BIC services).

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SASU and EURL: the company route

For drivers who want to maximize social protection or prepare for growth (second vehicle, hiring, resale).

SASU:

• President assimilated-employee: reinforced social protection (general scheme)
• IS taxation by default: 15 % on the first €42,500 profit, 25 % beyond
• Possibility to pay yourself in salary + dividends
• Full company bookkeeping (balance sheet, tax bundle, annual AGM)
• Creation cost: €200-500 (statutes + legal notice)
• Salary social charges: ~75-80 % (employer + employee)

EURL:

• Majority manager TNS (like EI at real regime)
• IR taxation by default, IS on option
• Similar creation cost to SASU
• Lower TNS social charges, but weaker social protection

When to switch to a company: beyond €90-100k revenue, if you hire a second driver, or if you target patrimonial resale (share transfer). Below that, administrative complexity rarely outweighs the savings.

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Comparison table of statuses for a VTC driver

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When to change status

Three key moments justify a transition:

1. Approaching the micro cap (€60-70k)

At this stage, exceeding it is likely the following year. Better to anticipate transitioning to EI at real regime or to a company. Exceeding triggers automatic exit from micro regime with sometimes painful VAT and URSSAF catch-up.

2. Expenses > 40 % of revenue

If your real charges (lease, fuel, insurance, maintenance) exceed 40 % of your revenue, the 50 % flat-rate deduction in micro disadvantages you. EI at real regime becomes more profitable.

3. Hiring or expansion

If you take on a second salaried driver or buy a second vehicle leased to a subcontractor, SASU is almost mandatory to structure legally and fiscally.

In practice: start in micro, track monthly revenue, and switch to EI or company on accountant''s advice beyond €60k annually.

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URSSAF, VAT and declarations in Réunion

URSSAF Réunion: local body for your contributions. Dedicated site, online declaration, optional automatic withdrawal.

VAT:

• In micro: franchise as long as revenue < €36,800 (services)
• Beyond: VAT at 8.5 % (DOM rate) to collect, or VAT at 20 % depending on service nature. Most VTC rides are at 10 % in mainland France and 2.1 % in DOM for passenger transport.

TNS social charges (EI, EURL majority manager):

• Provisional flat rate first year based on estimated income
• Regularization the following year on real income
• Retirement scheme: self-employed scheme

SASU charges: general Social Security scheme, unemployment contributions NOT applicable to directors.

In Réunion, several specific aids exist: partial ZRR/ZRD exemptions, ACRE schemes (50 % reduction in charges the first year for business creators).

Whatever the status, Zoot registration remains the same. See our complete application guide→ and the becoming a VTC driver pillar.

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FAQ

Sole trader or SASU to start?

Sole trader in 90 % of cases. SASU only makes sense beyond €90k revenue or if you plan to hire/sell. Starting in SASU with €40k revenue means paying €5-8k/year in accountant and social charges for nothing.

From what revenue should I switch to EI at real regime?

Benchmark: €60-65k annual revenue if your real expenses approach 50 % of revenue. With a €450/month lease + €900 fuel + €200 maintenance + €180 insurance, your annual charges approach €21,600. At €60k revenue, micro loses you ~€3,000 vs EI real.

Does VAT apply to VTC rides in Réunion?

Yes, but at the reduced DOM rate of 2.1 % for passenger transport. This is a major advantage of 974 vs mainland France (10 %). Beyond €36,800 revenue in micro, you must collect it (or stay in franchise up to the majored threshold of €39,100).

What social protection in case of accident?

In micro/EI/EURL: TNS scheme, low daily allowances (€25-50/day after 7-day waiting period). In SASU: general scheme, better compensated but higher charges. Many drivers subscribe to private prevention insurance (€50-80/month) to close the gap.

URSSAF micro-entreprise validation delay?

24 to 72h on autoentrepreneur.urssaf.fr. You receive your SIRET by email. It is the fastest step of the VTC journey.

Can I combine salaried status and independent VTC?

Yes, mostly in micro-entreprise. It is even frequent in 974: private-sector salaried workers doing VTC evenings/weekends. Watch out for the exclusivity clause in your main employment contract.

Further reading

• Becoming a VTC driver in Réunion Island in 2026: complete guide
• How much do VTC drivers earn in Réunion
• VTC card 974: exam and procedures
• VTC for companies and pro accounts in Réunion

Status chosen? Apply on Zoot in 15 minutes→. And to understand the app your clients use daily, download the passenger version→.