That do A deductible VAT ?

The value added tax (VAT) is an consumption. VS’is a tax collected by companies on behalf of the’State. This means that the integrality of this is donated to the latter. But that’Does deductible VAT ? And precisely, what are the latest developments in national and community legislation on VAT of online trade activities ?

VAT e-commerce: that’What is it’East ?

VS’is a taxation that’performs on services and products sold remotely. Reforms have recently come into force in the online sales sector to improve, simplify the methods of collecting this tax and limit VAT fraud.

VAT: new reforms from July 1, 2021

Before July 1, 2021, the territoriality of certain operations was subject to a concept of HT sales threshold, in particular intra -Community distance sales:

  • Operations subject to VAT in the country of departure, as long as the VAD threshold in the country’Arrival n’is not exceeded;
  • VAT operations in the country D’Arrival when the VAD threshold in the country D’Arrival is exceeded.

As of July 1, 2021, all the EU companies established in a single Member State of the’EU whose overall amount of intra -community remote sales and cross -border B2C services, the amount of which is less than 10.000 euros HT can continue to charge the VAT of their countries of’establishments.

The measurement is that the VAT is due in the’State of destination. VS’is an effort of’harmonization which actually comes from the European directive of December 5, 2017.

Value added tax: a puzzle that’You must entrust to experts

This will to’harmonization manifested by the community directive and transposed by the finance law 2021 is proof of the complexity of the subject. Obviously, taxation in general and in’occurrence that linked to online trade requires’œhe d’an expert. Cabinets D’VAT experts are best placed to support companies in their development at the’InternationalI.

These are qualified to deal with VAT, customs regulations, and’other crucial questions to operate serenely in compliance with the legislation: click here to learn more about these subjects from tax specialists.

VAT e-commerce

What is deductible VAT ?

We are talking about deductible VAT because the value added is based on a collection and deduction mechanism.

When’A French company acquires merchandise with’a French supplier, the VAT paid to the latter will be deductible provided that the’buyer to the ability to justify the realization of’An operation opening the right to deduction (a local sale for example).

When the VAT declaration of the French company reports’a deductible VAT, this amount may make the’Purpose D’A refund of VAT to the competent authorities.

S’It is true that some operations are exempt, most of them make operators liable for payment of the tax. In France, there are generally Three categories deductible VAT rate.