Intra-community VAT concerns transactions that are carried out within the European Union. In general, any individual subject to VAT and who is a supplier or purchaser of goods and services abroad is required to have an intra-community VAT number. In the context of franchising, auto entrepreneurs must therefore have this number. This is made up of a country code (for France, the country code is FR), a computer key made up of 2 digits and the SIREN number of the company. If you work freelance and wish to receive your intra-community VAT number, you must contact the Business Tax Service in your region of residence and make a request.
What Are the Solutions You Have
You are probably wondering what the intra-community VAT number is for and if you really need it. If you are a self-employed entrepreneur and you carry out a purchase-sale activity, you must have an intra-community VAT number. In general, if you make purchases or import goods within the European Union for a cost greater than € 10,000 over the current financial year and the previous year, you must necessarily have this number. Thanks to this, your suppliers will no longer include VAT in your invoices, which you will have to declare and transfer to the SIE by following the rate in force on French territory. Make use of the 1099 tax calculator in this case.
In Case of the Purchases
In the event that the amount of purchases does not exceed € 10,000, this number is not mandatory and you then pay an amount including VAT to your suppliers. If you specialize in providing services, you are not subject to the minimum amount requirements. You are then required to have an intra-community VAT number. It is therefore an advantage for you if you work freelance and adopt the status of self-employed in the IT sector for example.
- When you have an intra-community VAT number, you necessarily mention it on any invoice issued for customers located abroad. Your invoice must therefore show the following indication: “VAT exemption, article 262 of the CGI”. If you are in the creation phase of your own business and you are sure that most of your turnover will be obtained in Europe, it is strongly recommended to apply for your intra-community VAT number once that you will have completed the formalities to obtain the status of auto entrepreneur.
When should you declare auto entrepreneur VAT?
There are two situations that may require a self-employed person to declare his VAT. First of all, the auto entrepreneur is required to declare his VAT when he exceeds the VAT exemption ceilings. Specifically, he must declare VAT in the context of an activity of sale or acquisition of goods and services related to accommodation, generating at least € 82,800 and at most € 91,200. This declaration must also be made in the context of services reduced to € 33,200 and increased to € 35,200. It is important to keep in mind that any auto business that declares its VAT for two consecutive years automatically leaves the micro business regime and finds itself in the real regime.
Likewise, during the administrative procedures and formalities to be completed, the self-employed person can decide to choose the option of VAT declaration. This alternative is valid for two years from the year of subscription. The subscription is systematically renewed over a new period of 2 years as long as the manager of the company has not taken the decision to terminate this subscription.
What are the different forms of auto entrepreneur VAT declaration?
To make the declaration of his VAT, the auto entrepreneur must take into account his regime: real or simplified.
The simplified regime is the regime applied by default to the manager of the company. Thus, if he does not request it, his company remains taxable according to the rules of this regime and the VAT return will be made each year. To perform this operation, the auto entrepreneur must complete a CA 12 VAT return no later than the second working day after May 1 of the year. He must indicate therein all taxable transactions which were carried out during the financial year.