Also in the news...
Protecting Business Reputation When Entering Foreign Markets
Expanding into new international markets presents promising growth opportunities. However, such moves come with challenges, especially when it comes to maintaining and protecting a business’s brand reputation.
Essential Steps When Moving Business Goods Across Borders
Shipping goods between countries brings up several obstacles for businesses. Customs rules and paperwork can differ significantly depending on the destination and the nature of the goods being shipped. Customs systems and documentation requirements vary across regions, making it necessary for companies to stay informed.
Sell to the world and grow your business
Compare international markets, create your export action plan and join the UK Export Academy for free training.
Maps of East Midlands Investment Zone tax sites
Find the Investment Zone tax sites within East Midlands Investment Zone.
2016 VAT Changes For Businesses In France
Following is a summary of the impact of French Budget Law on French VAT in 2016, and how it will affect companies with operations in the country over the next 12 months.
- Reduced distance selling VAT registration threshold
France amended its Tax Code- art. 258B and lowered the distance selling VAT registration threshold from €100,000 to €35,000 (net from tax), from 1 January 2016. Distance selling of goods from another Member State of the European Union (EU), to France, will be subject to French VAT once the total amount of the sales to France exceed €35,000 excluding tax. Alternatively, a supplier can chose to impose French VAT on invoices within the EU from the first euro. With this new amendment to the French threshold, France is, henceforth, in harmony with most EU countries’ distance selling thresholds.
- VAT rate on sanitary products
Classified as essential products, a tax break has applied to transactions since 1 January 2016. VAT on tampons and sanitary towels dropped from 20% to 5.5%. This measure is not extended to sanitary products for the elderly. The change brings France broadly into line with the UK, where the charge on women’s sanitary products is 5 per cent.
- Combating tax structuring
All VAT registered businesses will be required to use certified accounting software that fulfils conditions of inalterability, security, storage and archiving. There will be stricter enforcement mechanisms on the use of sales tracking software. Companies must be able to provide the tax administration with a certificate approved by a third party with the authority to conduct certification audits at a high security level, or a certificate from the software publisher.
A transitional period of two years is permitted for businesses to make necessary changes to their systems and accounting practices. From 1 January 2018, penalties of €7,500 will apply and businesses will have the obligation to comply within 60 days.
How we can help
Our experts in France can assist you in meeting the new accounting software requirements, submitting VAT registrations and invoice amendments, and we can provide guidance with regard to monitoring the distance selling threshold.
Got questions? Get in touch with our experts in France.