Essential Opportunities in VAT Returns: What Is Your Role in It?

Regarding the normal real regime and the real mini, a simple monthly VAT return (or quarterly, if the total annual amount to be declared is less than € 4,000) on a CA3 form, accompanied by immediate payment will do.

What information must appear on this form?

On the first page, all you have to do is indicate your company details and general information, such as your address, or your SIRET number, your VAT number.

  • On the next page, in the “Amount of transactions carried out” box, you will indicate all of your sales and purchases (taxable or not) by category, excluding taxes, for the previous month.
  • In the “Statement of VAT payable” box, you include sales and services (excluding VAT) and indicate the VAT collected according to the applicable rate. Then you enter the amounts of VAT paid on your purchases (deductible VAT).

Finally, in the last box “taxes payable”, you indicate the amount due to the tax authorities, insofar as your collected VAT is greater than your deductible VAT.

Otherwise, you get a VAT credit which can be carried over to the following year or be the subject of a refund request. Using the s corp tax calculator is essential in this case.

The Last Step is to Send your Return to your Tax Office

Whether you have chosen the simplified or normal regime, your TPE Smallbusinessact accounting firm takes care of the calculation of your VAT and the completion of your VAT return, in addition to the support and advice of your Business Coach.

What to do in case of an error on your VAT return?

Because errors are quite common in VAT returns, companies have a certain amount of time to correct errors.If the tax authorities refunded the VAT on the basis of this error, the company will have to file a corrective declaration.

Otherwise, corrections are possible on the following declaration up to the sum of 4000 €; for a previous financial year, and beyond 4000 €, you will need a corrective declaration.

Understanding VAT

What are the applicable VAT rates?

The applicable rate is proportional to the price excluding tax of the good or service, and varies according to the type of transaction.

In France there are 4 different rates:

  • 20%, the most common rate applied on most sales.
  • 10%, the intermediate rate which applies to certain specific sectors, such as catering.
  • 5%, the reduced rate which concerns basic food products, gas and electricity supplies, books, etc.
  • 2.1%, the super reduced rate , which concerns drugs, live shows and the press.

The territorial economic contribution (CET) is made up of the business property contribution (CFE) and the business added value contribution (CVAE). Since 2010, this has replaced the business tax. The amount of the CFE is calculated by the municipality where the professional premises of a company are located. The CVAE is on the other hand only for companies which realize a turnover higher than 500,000 euros.