Certain activities are nevertheless excluded from the mechanism. This is the case for operations on buildings and agricultural activities.
How the Sales tax exemption works
The company subject to the exemption on the basis of Sales tax must bear a specific mention on its invoices: “Article 293 B, Sales tax not applicable”. No Sales tax amount should appear on the invoice.
Under the principle of reciprocity, a business that does not collect Sales tax cannot deduct the Sales tax it pays for its business expenses either.
It is possible to waive the application of the exemption on the basis of Sales tax. The use of the free sales tax calculator comes useful there.
The real normal Sales tax regime
The actual normal regime corresponds to the classic Sales tax regime. It consists of filing a monthly or, optionally, quarterly declaration.
The conditions for applying the real normal regime
The actual normal regime applies to companies whose annual turnover is greater than:
- € 789,000 for the activities of selling goods, selling for consumption on site, and providing housing.
- € 238,000 for other services and liberal activities.
- The law offers the possibility to other companies to voluntarily opt for this regime.
The operation of the actual normal regime
Companies subject to the real normal regime submit a monthly Sales tax return, and pay the positive balance of Sales tax each month. This balance results from the difference between collected Sales tax and deductible Sales tax.
It is possible for the company to opt for a quarterly declaration when the Sales tax payable over the year is less than € 4,000.
Each month or quarter, the company is required to report on a CA3 declaration the turnover achieved during the period, the amount of Sales tax collected and the amount of deductible Sales tax.
The mini-real Sales tax regime
The mini-real Sales tax system is still little used, because it is unknown to companies. It is very close to the real normal regime, with one small feature. It consists in the application of the real normal Sales tax regime, while the company remains in the regime of the simplified declaration of profits.
In principle, the option for the real normal Sales tax regime switches the company into the real normal regime for declaring its profits. However, this regime can prove to be restrictive for the company since it implies reinforced accounting and fiscal obligations.
The mini-real regime avoids this pitfall.
The real simplified Sales tax regime
The real simplified regime was created for medium-sized companies, in order to reduce the administrative burden. It consists of filing an annual declaration.
The conditions for applying the real simplified regime
Companies subject to the real simplified regime are those which fall between the turnover thresholds for the Sales tax exemption and those of the normal real regime.
However, another condition is the amount of Sales tax paid in N-1. If it was greater than € 15,000, the company can no longer benefit from the simplified real in N. It then switches to the real normal Sales tax regime, whatever its turnover.