VAT declarations and payment
I. The normal regime (Régime réel normal)
Monthly returns and payments: The normal regime automatically applies to companies whose turnover for the previous year exceeds €789,000 for housing sales and supplies and €238,000 for other operations. The taxpayers may opt for this reporting system. Every month, taxpayers subject to the normal real regime must file a CA 3 declaration covering the amount of the various operations carried out in the previous month. This declaration makes it possible to settle the VAT due on these transactions and to pay it, within the same time limits, to the tax authorities. However, where the tax payable annually does not exceed €4,000, VAT returns and payments are made on a quarterly basis.
Date of filing of declarations:
The deadlines for filing returns and paying VAT vary depending on whether the person liable for payment is a sole trader, a company or another person liable for payment.Installment payment system: Companies may be entitled to an additional month if, due to their activities or the nature of their structure, they have difficulty filing their returns within the prescribed time limits (summer holidays, for example). In return, these companies must, within the normal time limit, pay a deposit, representing at least 80% of the amount actually due. The regularisation takes place the following month, when the declaration is submitted. On this occasion, either an additional payment or a charge against the down payment of the following month is made. Where the advance payment is found to be more than 20% less than the amount actually due, the debtor shall bear the interest for late payment, without prejudice, where applicable, to any other applicable penalties.
II. The simplified reality regime
CA12 declaration and half-yearly installments:
- VAT is paid in the form of half-yearly installments. The first installment paid in July corresponds to 55% of the VAT due for the previous year before deduction of VAT on goods constituting fixed assets.
- The second installment paid in December is equal to 40% of this base. In some cases, it is possible to increase or decrease the amount of the installments, or to suspend payments.
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