YOU SUPPLY GAS TO FINAL CUSTOMERS In France.

SHOULD YOU CHARGE TAX TO YOUR CUSTOMERS ?

You need to charge the following taxes  :

• DOMESTIC TAX ON CONSUMPTION OF NATURAL GAS (TICGN):  

It is due if natural gas is used as fuel, and if deliveries are performedto final consumers in France.  There are however several cases of exemption.

The statements are quarterly. The tax must be paid with customs no later than the 25th day following the reference quarter.

• THE ROUTING CONTRIBUTION TARIFF (CTA) :

Suppliers are liable for the payment of the contribution for their customers based in France with whom they have concluded a contract including a natural gas distribution service over public networks of distribution or transmission.

The statements are quarterly if the annual estimated amount of CTA is less than € 102,000. The tax must be paid to the CNIEG no later than 24 of the following month.

More information on the website of the CNIEG: www.cnieg.fr

• VAT :

Are subject to VAT in France supplies of natural gas, irrespective of the supplier’s place of establishment:

– when such goods are consumed in France,

– In other cases, when the acquirer has in France the seat of his business or has a fixed establishment for which the goods are delivered or his domicile or habitual residence.

However, where the supplier is established outside France, the tax is paid by the buyer who has an identification number for VAT in France .  In other words, suppliers based outside France must file VAT declarations if customers are French individuals or organizations not registered for VAT in France.

Quarterly VAT returns are to be made if the annual amount of VAT declared is less than € 4,000. Beyond that amount, returns must be made monthly. The declaration shall be filed to the tax authorities and the tax must be paid on or before the 19^th of the following month if the supplier is established in the European Union or the 24th of the following month if the supplier is established outside the European Union.

Suppliers established outside France must appoint a tax representative residing in France and accredited by the tax authorities, who is personally responsible for reporting operations and for the payment of amounts due.