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bigduckontax, Accountant
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I have a question that relates to a French company providing

Customer Question

I have a question that relates to a French company providing services in France and VAT & TVA being charged to a UK company as a pass through for a UK client. Does anyone have any expertise in this area to advise me ?

The specifics are:

We are a UK based brand consultancy. Our client is a UK based FMCG. We launched a personal product for the FMCG in Paris. We used local suppliers (Photographer, Illustrator, Artwork etc) and the launch took place in high-end Restaurant. I would expect the French suppliers to include both their and our VAT numbers on their invoices and not charged VAT. Some are advising they need to charge both TVA and VAT. My question is what is the ruling VAT/ TVA or not. If not what rule can I quote, if it is applicable can I claim back in the UK via our VAT Return. Thanks.

Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.

Hello, I'm Keith and happy to help you with your question. French tax is so complex and in a continual state of change one should always employ a local French professional. However, in this case, your query is relatively simple.

Yes, you can claim back the French VAT [TVA] as an input in the relevant box on the VAT 100 which you must file on line. Frankly, it's dead easy!

TVA (la taxe sur la valeur ajoutée - TVA) is simply the French equivalent of our VAT. You may need the French suppliers equivalents of our VAT code to complete a VAT EU Sales List, but this need only be completed if you are making taxable supplies to an organisation in another EU State which is itself registered for the equivalent tax and not charging VAT on your own company's invoices; a reverse charge situation. If you make zero sales at no VAT to another EU state than the Sales List is not required at all. One of my companies still receives these lists although the only such supply was a one off 20 years ago!

I do hope I have helped you with your inquiry. Please do not hesitate to respond if there is anything you are not clear upon.

Customer: replied 2 years ago.

Thanks Keith. This is helpful and also the info on the VAT EU sales list.

For some reason the Restaurant where the product was launched are indicating a 10% TVA change plus a 20% TVA charge. Is it possible there are 2 levels of VAT rates for food and restaurant hire for example ? As the net invoice cost is € 10k it is fairly material. Regards, Paul

Expert:  bigduckontax replied 2 years ago.
As I told you Paul French taxation is highly complex and in a constant state of flux. The use of a local professional is essential. Here are the French rates of TVA:
'VAT (Taxe sur la valeur ajoutée - TVA) is a consumption tax paid on certain goods and services purchased in France and is included in the sale price of these goods and services.
There are four rates of VAT in France (2013): [Source Angloinfo]
20 percent: This is the standard rate
10 percent: This applies to restaurants, transport, renovation/improvement works and certain medical drugs
5.5 percent: This applies to food, water and non alcoholic beverages, books, special equipment for the disabled and school canteens
2.1 percent: Special rate - applies to medical drugs reimbursed by the French social security.'
On the face of it the tax would appear to have been correctly applied.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.

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