Does your company work with suppliers or customers located in other Member States of the European Union? Do you plan to do it soon?
Explanations
A company registered in a country of the European Union having commercial relations with another company of a member country is obliged to respect certain rules specific to intra-community VAT.
Each company is thus assigned an intra-community VAT number by the tax administration of its country. This number is also known as an “individual tax identification number”. It must appear on all trade documents such as invoices and VAT returns. Its purpose is to identify the companies concerned while facilitating customs procedures. It also makes it possible to speed up the monitoring of VAT.
Exceptional Exemptions
Exceptional exemptions are granted here to natural or legal persons who are not subject to VAT, or who benefit from the basic VAT exemption option in France. The same is true for farmers who benefit from the agricultural flat-rate option.
However, from a commercial transaction or a service exceeding a value of 10,000 €, they must request the attribution of intra-community VAT. You can properly calculate with the sales tax calculator now.
The different VAT regimes
There are different VAT regimes applicable, depending on your turnover or an option to choose from.
Excess based on VAT:
Valid for micro-enterprises and micro-entrepreneurs, this device allows both customers not to charge VAT but does not allow VAT to be deducted on purchases.
The thresholds are as follows:
- 82,000 euros in turnover from the sale of goods
- 33,000 euros in turnover for the provision of services
Simplified real regime:
The payment of VAT is made in the form of two half-yearly installments made in July in December of each year, and is subject to regularization no later than May of the following year.
Down payments are calculated on the basis of VAT paid in the previous year. For the first year, the two installments are freely fixed by the company manager according to the activity of his company during the first months of the year. However, it is advisable to calculate the actual amount owed so as not to disburse too large an amount at the end of the year.
The thresholds are as follows:
- Between 82,000 and 783,000 turnover relating to the sale of goods
- Between 32,000 and 236,000 turnover relating to the provision of services
Normal real regime:
- The declaration and payment of VAT are carried out monthly on an actual basis.
- If the annual VAT paid is less than 4000 euros, the declaration and payment can be made on a quarterly basis.
The thresholds are as follows:
- Over 783,000 turnover from the sale of goods
- Over 236,000 turnover for the provision of services
Note that it is possible to opt for the simplified actual regime when one is exempt from VAT, and to opt for the normal actual regime when one is subject to the simplified reality.