Stephen Smith (France) Ltd

[tarat]

I want to start a new venture selling products in France, which will in the main be imported from UK, Holland and Germany. Will I have to register for TVA straight away, or do I wait until I have reached a certain threshold? I am used to the VAT system in UK, having run a sales business for 6 years there. Are there any similarities between the Uk and French systems? Help!!

[PhilT]

The best way is to set up a small business/sole tradership under the MicroBIC tax schedule.

Sole traders qualifying as a micro-entreprise are those whose turnover does not exceed

76 300 euros net and of which the main trading activity is the sale of goods, property, the supply of foodstuffs to be eaten on the premises or taken away or the provision of accommodation (hotel or rental)
(note, in the above, "property" is a rendering of the French "objet" and has nothing to do with real estate)

27 000 euros net for ancillary services coming under the BIC tax schedule or the BNC for other professionals (doctors, vets, lawyers).

Should you exceed the turnover threshold, become liable for VAT or elect to be so liable, you will no longer be assessed under the Micro-BIC schedule. Neither will you have the advantages of Micro-BIC should you trade in real estate, good will and business premises or the hire of machinery or durable consumer goods.

Note about trading in real estate: if accepting commissions or emoluments, "Property Find" may be considered an "entremise" under the Loi Hoguet and a carte professionnelle to act as an estate agent is required.

Do also be careful if importing goods as special regulations may obtain even within the EU.