YOUR VAT
Afc is a VAT specialist. We assist with a vast array of VAT-related questions.
Fernando has set up a textile trading company in Brazil. He wants to develop his business in France and needs to appoint a tax representative for that purpose.
Our experts take charge of the processing of your VAT :
Registration, returns, payments, refunds…
Human-scale :
your file is not a number, but a person behind it
VAT registration in France and Europe, SIREN/SIRET number
Your company is established in a European Union Member State or elsewhere and performs commercial transactions subject to VAT.
You are required to report these transactions and apply for a VAT number in order to register the company:
- Sale of goods and services to individuals (B2C) or businesses (B2B) domiciled in the EU
- Exportation of goods to a non-EU country
- Supply of goods to an EU Member State
- Purchase of goods from an EU Member State
- Purchase of goods in France
- Importation of goods from a non-EU country to an EU Member State
French or European VAT refunds
Your company is established in a European Union Member State or elsewhere and makes purchases subject to VAT without having a permanent establishment in the relevant country.
Expense claims, rent payments for a space or stand, conference attendance costs and purchases made for your local office are all expenses you can recover throughout the European Union.
Under certain formal and substantive conditions, you may file a VAT refund claim with the tax authorities of each country.
There are two procedures for recovering VAT paid on your purchases in France and the European Union:
- For companies established in the European Union: the “8th Directive” procedure
- For companies established outside the European Union: the “13th Directive” procedure
VAT one-stop shop (IOSS)
The Import One-Stop Shop (IOSS) is the electronic portal businesses can use to comply with their VAT e-commerce obligations on distance sales of imported goods:
- Intra-Community distance sales of goods
- Sales of goods from third countries subject to conditions
- B2C services provided in a country in which the companies are not established
Companies opting for the IOSS system are no longer required to register with the tax authorities of each Member State of consumption in order to file returns and pay VAT. VAT is declared and paid to a single Member State via the one-stop shop.
Otherwise, companies may opt to register and file VAT returns in each country in which they sell goods or services. Most transactions are taxable in the Member State of consumption. All commercial goods imported into the European Union from a third country or territory are subject to VAT, regardless of their value.
VAT one-stop shop (OSS)
VAT rules have changed since July 1, 2021(e-commerce reform):
- National distance-selling thresholds and the VAT exemption on imports of low-value consignments have been abolished
- Three new one-stop-shop (OSS) schemes have been set up
- Marketplaces are henceforth liable to pay VAT
Reversal of liability
Thanks to the system of reversal of VAT liability on imports, your company established in the EU can import goods without paying VAT upfront but by applying a reverse charge in its VAT return.
Tax audits
Your company issues invoices in France and/or receives invoices from French suppliers.
During a tax audit, the tax authority requires the audited company to be able to provide a “reliable audit trail”. In other words, at the request of the authorities, the company must be able to reconcile invoices issued and received with the corresponding supplies of goods or provision of services.
You are also required to provide the tax authorities with a copy of the accounting records file (FEC). The FEC is an electronic accounting file containing all accounting entries that must comply with a set of specifications and layout requirements. The authorities request information on the basis of this file.
B2B Quick fixes
Your company is established in the European Union.
It is affected by the new “quick fix” transitional measures applied since January 1, 2020 pending the final VAT reform:
- New conditions for exemption of intra-Community supplies
- Harmonization of rules on intra-Community transport
- Simplification measures for chain sales and call-off stock arrangements
Our experts advise you on this new regulation by flow analysis. With our guidance, your company becomes compliant while optimizing VAT.
VAT returns and payments
In accordance with the regulations, your company must periodically file a VAT return (usually monthly) within the stipulated deadlines. Penalties are applied by the tax authorities in the event of incorrect or missing information on invoices, late payment or late filing of the VAT return.
