YOU CARRY PASSENGERS IN FRANCE
SHOULD YOU CHARGE vat? WITH WHICH RATE ?
Passenger transport are taxable in France where transport takes place on the basis of the distance covered, at the reduced rate of 10%.
Exemption cases :
Passenger transport are VAT exempt in certain cases:
- Transport of sick or injured persons using vehicles specially designed for this purpose ;
- Air transport of passengers from or to overseas territories and departments are exempt, even for part of the journey performed over the country, if the point of departure or end point is located outside France ;
- The see transport of passengers to and from abroad or overseas departments and territories sea ;
- Rail transport to or from a place located outside France are taxable on the French part of the course, while rail transport from and to abroad (transit) are exempt from VAT. Are also exempt railways carried in international traffic, international railway transport of groups whose size is at least the capacity of a car bed or a passenger car, starting to communities served by aerodromes open to passenger traffic, and transport within the framework of the Channel fixed link ;
- Road transport to or from abroad are taxed on the French part of the journey by road transport ; alternatively, foreign travelers coming from and going to abroad (transit), are exempt from VAT when traveling in group at least ten people.
SHOULD YOU REGISTER FOR VAT IN FRANCE ?
The companies not established in France that carry out operations for which they are liable for VAT in France are subject to the same obligations as French companies.
If your company is established in an another EU country, it must be VAT registered in France to pay VAT and to fulfill the related reporting obligations.
If your company is established in a country outside EU that has not signed any agreement with France on administrative assistance, it must appoint a tax representative in France in charge of all these formalities.
yOU PERFORM SALES OF GOODS ON BOARD OF A BOAT, plane Or TRAIN
should you charge VAT?
Sales of tangible movables on board of a boat, plane or train are taxable in France when the goods are in France at the time of departure of a transport where the place of arrival is situated in a EU Member State. Each trip in the European Union with passengers boarding or disembarking is considered a journey ;
This applies e.g. to sales on board of food prepared for immediate consumption.
With respect to river cruises, including catering services and accommodation or other services on board for a global price besides passenger transport, they are considered as a single transport service for the purposes of VAT and subject to reduced rate.
Conversely, the services or deliveries of goods not included in the overall price and invoiced separately (such as sales on board or store) remain subject to the VAT treatment and rate of their own.
Exemption cases:
- The supply of goods for fueling international transport are exempted from VAT in certain cases;
- Sales of goods on board to eat in or takeaway by passengers who go directly to a third country (outside the EU). The transfer of ownership and physical delivery of the goods must be carried on board the ship or aircraft.
SHOULD YOU REGISTER FOR VAT IN FRANCE ?
The companies not established in France that carry out operations for which they are liable for VAT in France are subject to the same obligations as French companies.
Companies established in another EU country have to register for VAT in France to pay VAT and fulfill the reporting obligations. Companies located in a country outside the European Union that has not signed any agreement with France on administrative assistance must appoint a tax representative in France in charge of all these formalities.
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 (*).
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
FOLLOW 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
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.
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.)
(*) In case of VAT registration in several countries of the European Union, our European correspondents from the Tax Representative Alliance TRA can help you by offering:
- assistance with VAT registration and VAT compliance,
- one single contact, the Client Relationship Manager, who will coordinate the VAT registration and compliance with our correspondents in the different countries,
- online access to TRA extranet that allows you to upload and download documentation and data.
Do not hesitate to contact us for any assistance or question!