As an accounting firm based in Lyon, we meet every month to offer you the best of the French tax and accounting news.
VAT taxpayers carrying out intra-community operations:
Deadline for filing European Services Declaration (DES) for transactions carried out in July.
Employers subject to payroll tax: deadline for electronic payment of tax on salaries paid in July.
Good to know
IMF : encouraging forecasts
According to the latest analyses published by the International Monetary Fund (IMF) at the beginning of August, the growth forecasts for 2023 are better than those presented in the last report dated April. The IMF is now expecting global growth of around 3% in 2023. Monetary policies aimed at limiting inflation therefore appear to have been successful, even if the IMF insists that efforts must not be relaxed. The French economy is also doing well, with growth forecasts raised slightly from 0.7% to 0.8%.
Electronic invoicing: implementation initially scheduled for July 1, 2024 postponed
For several years now, the French tax authorities have been calling for the widespread introduction of electronic invoicing between the various players in the French economy. The main aim of this overhaul of the invoicing system is to combat fraud and simplify reporting and control obligations, particularly in regard to VAT.
In a press release dated 28 July 2023, the government announced that it was postponing the timetable for the widespread introduction of electronic invoicing by businesses. Since electronic invoicing requires platforms to be set up for sending and receiving e-invoicing data, the government wants to give things time to set up properly.
The new timetable will be announced when the Finance Act for 2024 is published.
The previous timetable provided for rollout from 1 July 2024 in 3 stages:
- In 2024, e-reception for all taxable persons, and e-sending for large companies;
- In 2025, e-sending for medium-sized companies ;
- In 2026, e-sending for small and medium-sized businesses and micro-businesses.
No more sales receipts from August 1, 2023: watch out for your accounting documents!
As of August 1, 2023, receipts will no longer be issued automatically when you make purchases in France. This means that, unless expressly requested by the customer, stores will no longer issue this receipt, even though it is essential for proper bookkeeping!
As a reminder, for an expense to be deductible, it must be supported by an invoice or sales receipt.
We therefore recommend that you be vigilant when making future purchases (goods and services): it is imperative that you ask for this document when making payment.
However, this new regulation will not affect the following purchases, for which a receipt will be issued on a mandatory basis:
– purchases of goods and services over €25,
– purchases of durable goods (IT equipment, telephones, household appliances, etc.),
– purchases from vending machines (e.g. service stations),
– cancelled transactions.
We also recommend that you inform your employees of this new regulation, who should also remember to request these receipts for their business expenses.
Deadline for declaring occupancy of real estate extended to August 10
The impots.gouv.fr website experienced a number of technical problems at the end of July, due to the large number of connections from taxpayers wishing to access the property occupation declaration service.
As these technical constraints make it difficult to connect, the tax authorities have decided to extend the deadline for these returns to 10 August.
New decision by the Conseil d’Etat on the classification of the para-hotel activities for VAT purposes
In a decision dated 5 July 2023, the Conseil d’Etat ruled that the provisions of art 261 D 4° of the French Tax Code were incompatible with the objectives set out in art 135 of the European Directive of 28 November 2006.
For VAT purposes, the para-hotel activity should not be defined solely by the strict application of at least 3 of the 4 services defined by art 261 D 4° of the French Tax Code. The Conseil d’Etat considers that the accumulation of at least 3 of these services does not appear to be systematically essential for such rentals, if the context in which they are offered, means that they can be regarded as being in competition with the hotel sector.