Monetary collections relating to service provision activities carried out before the first day of the month in which it then becomes subject to VAT, are not obliged to be subject to tax, even if these collections took place after the changeover.
To be able to enter VAT on your invoices, you must have an intra-community VAT number, which can be given to you by the Company Tax Service to which it is subject.
Specific regime for lawyers, authors and performers
If you exercise a regulated activity as a lawyer, author, performer, you benefit from a different franchise. In fact, maintaining the franchise the year following the exceeding of the limit does not apply to these regulated activities.
Regarding the regulated activities of lawyers as well as for the profits of authors and performers, the franchise no longer applies from the first day of the month in which the threshold is exceeded, but only when the income is greater than 52,800 €.
There is no impact on the franchise for regulated activities when the lawyers’ income limit (€ 21,300) is exceeded. Using the 1099 tax calculator comes useful.
Return to normal diet
This only concerns companies subject to VAT and whose CAHT is greater than:
- € 238,000 for service provision activities.
- € 789,000 for trade, supply and sale of food to be consumed on site.
If your company has a HVAC which is included in the threshold for the simplified tax regime and declares more than € 15,000 in VAT per year, it is therefore affected by this regime.
The companies concerned by the real normal regime, for their part, declare monthly the VAT which is required during the period of the previous month. They must pay VAT directly online, at the same time as their account or through a service provider.
The exemption from VAT makes it possible to offer competitive and advantageous prices . However, if your customers are in fact businesses, you should offer lower rates than your competitors’ pre-tax prices. Remember that businesses are subject to VAT and therefore, can get a deduction on anything charged to them.
No deduction of VAT paid
Once a self-employed person is subject to VAT, he pays back to the state all taxes that have been collected on the invoices. However, the entrepreneur can decide to decrease the amount that must be paid to the State by subtracting all the VAT that he has already paid when he made purchases for his business (electricity, purchases of raw materials, etc. ).
If you buy raw material products, you cannot collect or pay VAT. If you are in a business that requires the purchase of raw material or item for the purpose of resale, it is essential that you sell your products for considerably more than they cost. You can prefer countries where VAT has a lower rate.
Possibility of waiving the VAT exemption
In the event that your activity needs investments and you want to invoice or recover VAT, you can waive the VAT exemption. You can renounce it at any time, simply by sending a letter to the Public Treasury. The waiver becomes effective on the first day of the month in which it is sent.