|
|
In relation to the V.A.T., there are three different schemes :
1) The "Micro Entreprise"
The annual purchase/resale turnover must be less than 76,300 €. The annual service turnover must be less than 27,000 €.
If not, the company must use the "Réel simplifié".
Advantages :
- no accounting to keep except one expense ledger and one receipt ledger but it is necessary to keep invoices and bank statements;
- no deduction of VAT and no billing the customer for VAT, but the invoice must include the statement : "exonération de TVA en vertu de l'art. 293-B du CGI".
- the government will calculate profits at a standard rate (expenses will be automatically deducted on the basis of the annual turnover).
Disadvantages :
- some expenses will not be taken into account;
- the craftsman will not recover VAT on investments.
2) "Réel simplifié"
For companies with an annual turnover of 230,000 € in services and 763,000 € in purchase/resale. Daily accounting must be kept with purchases, sales, bank transactions, cash and various other operations. A stock book must be kept, paginated and initialled by the court. A day book, paginated and initialled by the court, and a general account ledger are required as well.
Advantages :
- possibility of recording additional costs such as depreciation expense;
- possibility of creating reserves (for doubtful debts, stock losses, etc.);
- possibility of deferring depreciations (no time limit).
3) "Réel normal"
For companies with an annual turnover greater than 230,000 € in services and 763,000 € in purchase/resale.
|
