yOU Lease OuT MEaNS of TRANSPORT iN FRANCE
should you charge VAt ? in which countrieS ?
Short term lease of means of transport (not exceeding 30 days, or 90 days for means of sea transport) are taxable at the place where the means of transport is made available.
If you make short term leases of a vehicle and made them available to customers in France, you should charge French VAT.
Long term leases are taxable at the place of establishment of the recipient
Example:
You lease out an airplane for a weekend to an individual for a return flight between Le Bourget (France) and Morocco.
Nature of transaction:
The nature of transaction must be determined according to the terms of the contract, particularly as regards the provisions on insurance and liability of the owner, as well as pricing and control of movement by the service provider.
When pricing is directly related to the distance traveled or where the final destination is determined in advance by the provider, the service will be considered as a transport service. Alternatively, services charged on a time spent basis for which the rate is less dependent on the distance traveled than on the duration are regarded as leasing.
VAT treatment:
The short-term lease is subject to VAT in France at the rate of 20% since the aircraft is available at Le Bourget.
Lease payments are subject to French VAT including for the distance traveled outside the European Union. The part of the lease corresponding to the time of the return trip is not considered distinct from the first as the lessee continues to have the plane at his disposal. The duration of continuous use of the aircraft will be assessed based on the terms of the contract and the facts
should you register for vat ?
If your company performs this type of leasing, it needs to be VAT registered in France to declare VAT and to pay the VAT collected.
If it is established outside an EU country that has not signed any agreement on administrative assistance, it must appoint a fiscal representative.
WHAT CAN WE DO FOR YOU ?
ASSESS THE VAT OBLIGATIONS resulting from the transactions you make in France.
APPLY FOR A VAT REGISTRATION NUMBER in France and possibly in other EU member States depending on the case .
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PROVIDE TEMPLATES with a view to gathering the relevant information for the purpose of periodical VAT returns.
REVIEW the purchase and sales INVOICES in support of operations.
COMMUNICATE THE identified ERRORS and advise on how to handle possible issues.
LIAISE with suppliers and freight forwarders to track corrective actions.
PREPARE THE VAT RETURNS
Learn moreFOLLOW ANY PAYMENT of VAT due or receivable by you.
PREPARE AND SUBMIT VAT REFUND CLAIMS on expenses of goods and services used for the business purpose
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Act as a TAX REPRESENTATIVE on behalf of companies established outside the European Union that has not signed with France an administrative assistance agreement, and as a TAX AGENT for businesses established a EU member State.
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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 ….
ANNUAL MEETING on the follow- up of the file.
REGULATORY MONITORING and analysis of the consequences on your reporting requirements.
ADVICE or administrative service( issuing invoices, applicable VAT, VAT rates, etc.)
Do not hesitate to contact us for any assistance or question !