Startup Overseas Forums

I am interested in starting a company in France. This will involve offering one week courses to people in the UK, France and worldwide. The courses will be arts related eg painting, furniture restoration and photography. Combined with this accommodation on 'gite' basis will apply.

Please can you confirm which rate of TVA I would have to charge as an addition to the price of the course/holiday?

The standard rate of TVA in France for goods and services is 19.6%. However, whether you would be charging with TVA denoted as TTC, would depend on the regime you are in and the turnover of your business.

I would suggest you look at starting as an auto-entrpreneur. This is a simplified new business regime, allowing you easy online registration and easy pay as you go quarterly payments against total invoice values. For services it is 21.3% including social charges and tax and for sales of goods 13% of total invoice values for both social charges and tax. Auto-entrepreneur operates below the TVA thresholds of approx 33k for services and 80k for goods alone or goods and services combined

The alternitive would be to be in the regime real - where social charges would be 45% of total invoice value, then they deduct your business operating costs and then tax you against the tax baremes (thresholds) starting at 5% and rising to 40%. .

This is an extremely simplified version of these regimes, but I hope it answers the questions posed and gives some insight into the complexity of even very small business taxation and social charges in France. It's not tax you have to be mindful of in France, but social charges as there is no minimum earnings threshold as in the UK for income tax and national insurance (social charges). They are charged whether you earn any money or not!

Ask the Experts: Camille Cruz Nogueira
French Accounting Expert
- See more at: http://www.startupoverseas.co.uk/france/experts/camille-cruz-nogueira.html#sthash.mpu2HQYv.dpuf

kindly let me know

Ask the Experts: Emily Crews-Montes
France Market Entry
- See more at: http://www.startupoverseas.co.uk/france/experts/emily-crews-montes-france-market-entry.html#sthash.EasUyp3l.dpuf