https://escec-international.com/wp-content/uploads/2021/04/vat.png 1630 2446 Faten Amamou https://escec-international.com/wp-content/uploads/2021/01/escec-logo.png Faten Amamou2021-04-10 10:34:322021-04-10 10:34:32VAT Declarations & Payment
Presently, two reporting regimes are in place. Each one has a specific method of payment of VAT.
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.
Revenue thresholds to be met: The simplified tax regime applies to persons whose turnover, adjusted pro rata basis if necessary, does not exceed, for the previous year, the legal limits for the application of the RSI (Régime simplifié d’imposition-Simplified tax regime), i.e. €789,000 for sales and similar transactions, and €238,000 for services provided. New companies in the construction sector must file monthly or quarterly declarations within 2 years of starting their activity. They may only apply for the benefit of the RSI (Régime simplifié d’imposition- Simplified tax regime) as from 1 January of the second year following that in which their activity began (option to be exercised before 31 January).
CA12 declaration and half-yearly installments: As long as the net VAT due for the previous year does not exceed €15,000, RSI(Régime simplifié d’imposition- Simplified tax regime) taxpayers whose financial year coincides with the calendar year must file a single CA12 return no later than the second working day following 1 May of the following year.
– 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.
If the net VAT due for the previous year exceeds €15,000, it is necessary to file monthly VAT returns and pay VAT at monthly intervals.
Waiver of simplified formalities: Companies automatically subject to the simplified regime may waive the simplified formalities and opt for the application of the rules of the normal real regime. This option, formulated in writing, for the so-called “mini real” plan is valid for 2 years. The VAT option exercised has no impact on income taxation, as the company continues to benefit from the relief and simplifications of the simplified income tax system.
Mandatory Tele procedure: All companies are required, regardless of the amount of their turnover, to declare and pay VAT remotely, and also to transmit their VAT refund claims remotely.
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