yOU Supply SERVICES oR works relating real estate located IN FRANCE
SHOULD YOU CHARGE VAT to your CLIENTS ?
Services relating to immovable property (architect services, prime contractor …) and construction works are liable to VAT in the EU member State where the property is situated. French VAT must be charged when the property is located in France.
However, when the service provider is established outside France, French VAT should be charged only if the recipient of services is an individual or a company non-registered for VAT in France.
When the recipient is registered for VAT in France, the services are charged without VAT, the latter being reverse charged by the recipient.
WHICH VAT RATE ?
VAT should be charged at the rate of 20%.
However, the intermediate VAT rate of 10% may be applied under certain conditions subject to getting a certificate from the client prior to the execution of the work.
The intermediate rate cannot be applied to:
- the renovation work carried out in premises used for other purposes than residential,
- the provision of household or personal equipment,
- the acquisition of large equipment as part of the installation work or replacement of the heating system (unless it comes to energy saving works), sanitary installation or air conditioning.
- Important works that are more than a simple renovation:
- Elevation of the building, construction addition, increasing the existing floor area of more than 10%,
- Refurbishment of more than half of the shell,
- Renovation of more than 2/3 of each of the elements of finishing work: non bearing floors, external door frames, partitions, sanitary facilities, electrical installations and heating.
In case of a simple study assignment, the VAT rate is 20%.
If the interior designer is given a full study assignment and project management work in the same contract, the rate of 10% VAT is applicable to all services if works are referred to by this rate.
The energy renovation work for over 2 years housing benefit from reduced VAT rate of 5.5% ( laying, installation and maintenance of materials and equipment such as Condensing boilers,Insulating shutters or entrance doors to the outside).
SHOULD YOU REGISTER FOR VAT IN FRANCE ?
If you are a service provider established outside France and if the recipient of your services is an individual or a company non VAT registered in France which therefore should be charged with French VAT, your company has to register for VATin France, submit VAT returns and reverse charge the VAT collected.
When it is established in a country located outside UE and not having signed with France any agreement on administrative assistance, the appointment of a fiscal representative is required.
DURATION OF THE WORKS :
Where a company established outside France carries out in France a project with a duration of one year (the duration may be different according to international double tax treaties), the company will be regarded as having a permanent establishment in France subject to corporate tax and business tax in France.
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.Learn more
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.
CONSISTENCY CHECKS between the purchases and sales amounts.
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 RETURNSLearn more
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 purposeLearn more
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.Learn more
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 !