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EU firm without a French establishment: How can you get a VAT refund?

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REF.: 0050
If you are an EU based company without an establishment in France, you are a non-resident firm.

Generally, to deduct VAT in France you must also collect it, i.e. you must deliver goods and services subject to VAT. When you have deducted more VAT than you collected, this generates a ‘crédit de TVA’ (VAT refund).

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Foreign firms without a French establishment

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Who should you appoint to pay your social security contributions?

If you are a foreign company without an establishment in France, you are considered a non-resident  employer and if you want to recruit an employee operating in France, you will be liable to pay French social contributions.

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Reducing your French Wealth Tax (ISF) by investing in start-ups

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REF.: 0048

Impôt sur la Fortune

The Wealth Tax (Impôt sur la Fortune) in France has long been a source of debate. Even today, it remains a sort of ‘tug-of-war’ between the political left and right. It is an applied tax on the wealth of “rich” people, which aims to increase the contributions to the state budget of people who are at the end of their professional career and thus no longer generate taxable income. It is a symbol of differences in ideologies, a point of strong debate between those who prioritize social justice vs those who value rewarding individual merits.

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The New French ‘Google’ Tax

Google's head office

REF.: 0046

‘Google Tax’: How will it work in France?

The new “Google Tax” is intended to counter the methods used by multinational corporations to avoid paying tax in certain countries, particularly in the field of e-business where the location of profits is out of the control of sovereign states.

This tax is based on the Diverted Profits Tax recently introduced in the UK which came into force on 1st April 2015. A draft was introduced by Socialist deputy Yann Galut, which was passed by the National Assembly on 22nd November 2016, and therefore included in the budget bill for 2017.

However, to complicate matters, the Senate rejected it upon first reading on 30th November 2016. A Joint Committee will now be in charge of finding a common text.

The tax will affect the following:

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Reverse Charge on VAT for Imports

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REF.: 0045

Reverse Charge: Important changes you should be aware of.

On 8 November 2016, Parliament adopted the “Sapin 2” law, which provides a framework for the VAT reverse charge on imports.  Article 58 of the law replaces the simplified scheme with an authorisation system due to fears of a strong increase in VAT fraud…

In principle, the VAT due on imported goods is paid by the customs authorities at customs clearance. It is then recoverable from the revenue statements filed with the tax authorities.

The law of December 29, 2014 to amend finances in 2014 introduced the possibility for importing companies to reverse charge when they are liable for VAT in France.

This is useful because it allows companies to not pay VAT when clearing customs. Beneficiary businesses are allowed to declare and deduct the VAT on the n°3310 CA3 form.

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The ATAD (Anti-Tax Avoidance Directive)

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REF.: 0041

Important information about the ATAD regulations.

The ATAD (Anti-Tax Avoidance Directive) is a European guideline that was published in the Official Journal of the European Union on July 19th 2016.

Member states of the European Union must pass this directive as a national law before January 1st 2019.

The following evaluation will help you to understand the principles by which this directive shall issue new regulations which will be put into place, in France, from January 1st 2019.

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Social Charges: FNAL Contribution

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REF.: 0040

Employers: All you need to know about the FNAL contribution.

The law n°2015-1785, registered on the 29th December 2015, brings about a 3-year tax payment as an FNAL contribution at a rate of 0,50% on employees’ salaries for firms which employ a
workforce of 20 employees or more through the years 2016, 2017 and 2018.

The FNAL contribution (Fonds National d’Aide au Logement), a tax used to support people for housing purposes, is a contribution to be paid by all employers whatever the size of the business.

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Tax Credit for Entrepreneurs of Live Shows: Part II

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REF.: 0039

Seven frequently asked questions about claiming back taxes for live shows.

This article is a follow up from ‘Tax Credit for Entrepreneurs of Live Shows’, which was published on the 24th of August 2016. It explains ‘Decree 2016-1209’, which was put in place on the 9th of September 2016.

This decree specifies the necessary conditions for applying tax credit. It also defines the relevant shows and the limitations for certain categories regarding expenditure.

Unlike the previous article, this one is structured in such a way that it tries to answer any questions that may arise (concerning the tax credit) before you ask them.

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Incentives to Increase Employment in SMEs

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REF.: 0038

Financial Help and Tax Credits to Increase Employment and Business Competition in France

Often France is considered as the land of tight fiscal policy, a country lumbered with high taxes with little room for manoeuvre. This, however, is often not the case and there are several financial aids and tax credits which are designed to improve employment opportunities and facilitate healthy business competition between firms by decreasing the social charges which companies are currently under the impression that they have to pay.

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Brexit: VAT representation for non-EU countries

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REF.: 0037

We answer 9 frequently asked questions about VAT representation in France.

VAT representation is not necessary for companies established in the EU but it is for those outside of it.

Unless Brexit provides an exemption from VAT laws, investors will need tax representation when they perform transactions that are subject to French VAT.

This article illustrates the importance of the matter in layman’s terms. Moreover, it examines the measures that can be taken in order to ensure a successful future following the referendum:

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