TVA what's the meaning
TVA
Value Added Tax(VAT)is a general consumption tax that is charged directly to customers on goods they consume or services they use in France.This is why you must,as a professional,declare the VAT collected on these taxable transactions.
In general,sales and services provided in France are subject to VAT except when a specific exemption applies.
Taxable transactions
If you exercise a commercial,industrial,artisanal or liberal profession,you are required to repay VAT if you carry out transactions subject to this tax.They can be:
By nature
These are all deliveries of movable property,services or intra-Community acquisitions which:
involve the payment of consideration(the price)by the purchaser;
are part of an economic activity;
are carried out by a person who exercises his activity in an independent and habitual manner.
By a legal provision
These are operations expressly imposed on VAT by law.Are concerned in particular:
the imports;
self-delivery of goods and services;
delivery operations for buildings completed less than 5 years ago.
By option
Some people,not subject to this tax,are authorized to voluntarily submit their transactions to VAT.It's the case:
renters of bare premises for industrial or commercial use;
companies that normally fall under the VAT exemption regime and wish to waive it;
local authorities,for some of their services and local authorities for the sale of certain building plots;
farmers who are not liable for VAT on a compulsory basis.
Transactions are only taxable in France if they are located on national territory.
Non-taxable transactions
As a general rule,exports of goods and intra-Community deliveries are exempt from VAT.
VAT on imports
Since January 1,2022,the management and collection of import VAT has been transferred to the General Directorate of Public Finance(DGFiP).
Thus,the declaration and payment of import VAT must be made directly in support of the VAT declaration,and no longer at the time of customs clearance.This new method of reverse charge of VAT is mandatory for anyone subject to VAT in France.