AE and 'business premises ' tax

[Manon]

There was a tthread recently which I have been unable to find again regarding being charged a tax relating to the notional rental value of your home if it was registered as your prmises for AE purposes. I think Will posted and said that he had declared one room in the house for this purpose and I wanted to ask if 1) I had understood correctly and 2) how did you do this ? Thank you .

[cooperlola]

It took yonks to find it, but like you I remember this distinctly.  It's in the "Post Bag" board:

http://www.completefrance.com/cs/forums/2/2356313/ShowPost.aspx#2356313

[Will]

[quote user="lavorgere"]There was a tthread recently which I have been unable to find again regarding being charged a tax relating to the notional rental value of your home if it was registered as your prmises for AE purposes. I think Will posted and said that he had declared one room in the house for this purpose and I wanted to ask if 1) I had understood correctly and 2) how did you do this ? Thank you .[/quote]

Yes, you understood correctly, and it was done on a form that was sent as part of the business registration process, relating to taxe professionelle (too long ago to remember much about it).

I also said that this registration was not done under AE, in fact it was several years before AE was even conceived. Although my first year's tax was dealt with under the micro regime, subsequent years were undertaken as réel, which worked out much more economically viable. AE, in particular, was initially exempt from taxe professionelle. I do recall reading about people having been sent forms relating to this tax and there was a lot of confusion about whether it should be completed, or ignored as they were exempt. I suspect those who ignored it may be finding now that they are being charged for the replacement tax on the basis of their entire premises rather than the portion that was declared as being for business use.

Another point was that under the réel regime it was possible to offset costs of lighting, heating etc for the business 'premises', and that offset is not available if you are on AE or one of the other micro regimes.

 

[NormanH]

From another site:

Taxe Professionnelle, a local tax paid by businesses to local

authorities, was axed on 1st January 2010 and replaced by Contribution

Economique Territoriale (CET). The CET tax is divided between: Cotisation sur la Valeur Ajoutée des Entreprises (CVAE), a contribution based on your business’ added value (only paid by larger businesses with a turnover over 152 500€)  and Cotisation Financière des Entreprises (CFE),

a taxed based on your office, workshop, equipement and the town you

live in. Auto entrepreneurs are only liable to CFE in their second year

in business, if they have not opted for the income tax paid at source

(impot liberatoire). And this is where the confusing situation starts.

Auto-entrepreneurs who did not opt for the income tax paid at source

or “impot liberatoire” ARE liable to CFE from their second year in

business. In this respect the way the government communicated on

“Auto-Entrepeneur with no sales = no taxes” was misleading. Unless you

opted for impot liberatoire or income tax paid at source, the CFE is

due. Most people do not realise that the Auto-entrepreneur is a full

blown business and therefore is liable to extra taxes such as CFE.

Update

30th Nov:

Frederic Lefebvre, new Minister for SMEs, has

today announced at the National Assembly that CFE will be cancelled for

auto entrepreneurs with NO turnover. The 70 000 auto entrepreneurs with

no turnover declared having received a CFE bill will be exonerated.

Those having already paid their bill will be reimbursed.