B2C supplies

[dally]

If a UK business provides B2C supplies of land related services in relation to prperty situated in France, then as I see it:

1. These services do not need to be entered on its EC Sales lists (as not "reverse-charge" services); but
2. It may need to register for TVA.

Assuming the above is correct, does anyone know what the current French registration threshold is in this situation?

Thanks.

[Generix]

Valid as at 2009:

Non-French Entities
The registration rules that apply to French entities also apply to non-French entities which are making taxable supplies in France for which they are the VAT taxpayer. However, for non-French-based entities, no VAT registration threshold exists.In case of intra-EU deliveries performed from France, the non-French entities should register for VAT for Intrastat purposes.
Where an entity is from a European Union (EU) Member State in order to deal with its VAT, the EU business must register for VAT in France and may choose to appoint a VAT agent which has no liability to the tax authorities.


I don't think they've messed around with it since then - pretty sure all the B2B /Art192 stuff was in before 2009 in France also - so this should be good.

[dally]

Thanks, Generix.

So, if the business (a legal practice) provides advice / services from the UK in relation to the transfer / sale / purchase of French property to a non-business client (ie an individual) should the practice register in France / appoint an agent even if fees are only a few thousand pounds? Presumably, it won't matter where the individual is based (UK or France) as the place of supply is always France?

[Generix]

Thanks, Generix.

So, if the business (a legal practice) provides advice / services from the UK in relation to the transfer / sale / purchase of French property to a non-business client (ie an individual) should the practice register in France / appoint an agent even if fees are only a few thousand pounds? Presumably, it won't matter where the individual is based (UK or France) as the place of supply is always France?

All the VAT registration avoidance simplifications apply to B2B sales (by non resident entities to resident entities who can account for a reverse charge) - i.e. Art 194 (last post refers to Art 192 which is something different - it should have read 194 - but its a monday so give me a break ).

Therefore, the best I can see, according to current French VAT law, yes you have to register for FR VAT. (there may be a concession like in the UK where for a one off transaction you can be excused, but I don't have that detail of law to hand )

Although, in practical terms; would the French authorities ever find this small one off transaction? Probably not, therefore you could risk it for a biscuit and just ignore the law completely. I know a marketing company that did this for a clients annual conference in Spain for quite some years and was never caught............just throwing it out there.

[dally]

Thanks.