when do you need to submit a vat return iN FRANCE ?
As a business established outside France, you may have to submit VAT returns in the event that you are liable for VAT payment in France. Here is a list of examples where you are required to declare and pay VAT in France :
- YOU SUPPLY GOODS SHIPPED FROM AN EU MEMBER STATE TO PRIVATE INDIVIDUALS located in France. These sales named “DISTANCE SALES” must be charged with French VAT.
- YOU SUPPLY DOMESTIC DELIVERIES OF GOODS TO FRENCH PRIVATE INDIVIDUALS or businesses not VAT registered and have to apply VAT (reverse charge scheme not applicable).
- YOU HAVE GOODS SHIPPED FROM FRANCE to an EU Member State and deliver them to a business client (intra-Community deliveries), or have them shipped to a third country outside the European Union (exports).
- YOU IMPORT GOODS IN FRANCE and have to reverse charge the VAT on imports on French VAT returns.
- YOU SUPPLY WORKS AND OTHER SERVICES RELATED TO AN IMMOVABLE PROPERTY LOCATED IN FRANCE, , e.g. provision of services of expertise or real estate agent, provision of accommodation or re-invoicing of hotel expenses, architect services or local supervision offices, which are liable to VAT in the country where the real estate is located, when the customer is a private individual or a company not VAT registered in France (reverse charge scheme not applicable).
- You supply PASSENGER TRANSPORT IN FRANCE. Subject to specific exemptions, such services are normally liable to VAT in the country where the transport is performed based on distance covered.
- You provide SHORT TERM RENTALS OF MEANS OF TRANSPORT (less than 30 days for cars and 90 days for boats) in France which are liable to VAT in the country where you make the mean of transport available to the lessee .
- If you grant ACCESS TO CONFERENCES, trade fairs, training sessions/seminars located in France to several companies, you will normally have to charge VAT in the EU Member State where the exhibition/seminar takes place.
- YOU BUY SERVICES FROM A SERVICE PROVIDER LOCATED OUTSIDE FRANCE for the purpose of a liaison office or any other establishment you hold in France and must charge VAT under the reverse charge rule in France (the recipient must self-assess the VAT due and can recover the VAT at once on his own VAT return) ;
- YOU SUPPLY ONLINE SERVICES TO PRIVATE CLIENTS residing in France (e.g. website supply, web-hosting, distance maintenance of programs, supply of images, text, information, music, films, games, e-learning, etc.), that are liable to VAT in the country where the customers reside.
WHICH INFORMATION MUST CONTAIN A VAT RETURN ?
In a VAT return, a taxable person (business) gives the tax authorities in the EU member State where he is VAT registered information about :
Its sales :
▪ taxable transactions and VAT invoiced to customers (output tax),
▪ tax exempt transactions
- deliveries of goods shipped from France to businesses located in another EU Member State,
- exports of goods shipped from France to countries located outside the EU,
- sales to businesses VAT registered in France
Its purchases :
▪ where VAT is charged by French suppliers (input tax),
▪ imports or purchases on which VAT must be paid under the reverse charge rule (eg intra-Community acquisitions…)
The VAT amount due or to be refunded.
HOW OFTEN DO THE vAT RETURNS HAVE TO BE SUBMITTED ?
- Quarterly if the annual VAT amount to be paid is less than 4 000 €,
- Occasionally (no needs to submit “nil” VAT returns when there is nothing to declare) when there are few transactions to declare.In France there is no additional annual VAT return to submit.
WHAT IS THE TIME LIMIT FOR SUBMITTING A VAT RETURN ?
In the 19 or 24 days from the end of the reporting period based on whether the companies are located in an EU Member State or outside the EU.
The returns and corresponding VAT payment or claim for VAT refund have to be electronically performed and filed.
WHAT CAN WE DO FOR YOU ?
ASSESS THE VAT OBLIGATIONS resulting from the transactions you make in France;
PROVIDE TEMPLATES with a view to gathering the relevant information for the purpose of periodical VAT returns.
CONSISTENCY CHECKS between the purchases and sales amounts;
PREPARATION and submission of the VAT RETURNS, and follow-up actions with the competent authorities;
REVIEW OF THE FOLLOWING DOCUMENTS to the extent that they are provided to us :
- sales invoices and purchase invoices supporting the transactions,
- customs documents relating to imports into France and exports from France,
- shipping documents relating to intra-Community deliveries from France.
COMMUNICATION of any errors identified from the invoices, customs documents and transport documents, where possible, guidance on how to handle potential issues;
LIAISE with suppliers and freight forwarders to monitor corrections;
REQUEST FOR A VAT RELIEF QUOTA, Request for a VAT relief within a purchases or imports quota, distribute quota between the various suppliers, follow-up of the quota, request for new quotas during the year if needed;
FOLLOW UP of any VAT payment due or receivbable by you;
Prepare and filing of the VAT REFUND CLAIMS;
ANNUAL MEETING on the follow- up of the file;
Assistance in drafting REPLIES TO REQUESTS FOR INFORMATION FROM THE TAX AUTHORITIES, we are present during tax audits, we ensure liaison with attorneys on the occasion of tax litigations ….
REGULATORY MONITORING and analysis of the consequences on your reporting requirements.
ADVICE or administrative service.
Do not hesitate to contact us for any assistance !