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TVA Régime Simplifié Agricole, no first year income


Richardbk
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Hi to all you entrepreneurs,

My wife is setting up a horse breeding business which is classified as an agriculture business, type BA (Bénéfices agricoles). We are registered with the MSA, INSEE, Tax office etc and have a SIRET.

By default the tax office has put her in the TVA regime "Remboursement Forfaitaire Agricole (RFA)", which basically means she is not registered for TVA. Although TVA deductions are not possible with this system you can claim a small % based on your sales, which doesn't help us much as we will have no major sales for the first few years.

I note, however, that you can opt for the "Regime Simplifié Agricole (RSA)" , which is full TVA registration. Does anybody know whether it is possible to opt for RSA, even though there may be no receipts in the first couple of years. E.g. in the first years we would only claim deductions on investments and setting up costs until the first stock starts to arrive. Any pointers to the French TVA tax codes, or other sources on this specific point would be great.

Thanks for any info/advice

Richard

 

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Hi Richard,

We have been farming here for 3 years now and started off under the same regime as yourself.  You can register as RSA and it is not a problem at all.  Even though our turnover does not force us to register for TVA we were advised last year by our specialist Agricultural Accountants (cost 400€ PA) to register so we could claim back all the TVA we have spent (we are due  for a 2,700€ TVA refund next year) by reinvesting in the farm.  Our tax liability is still calculated on the land area we farm and not actual income so with 19HA being farmed we do not pay tax

The process of registering for TVA is very simple and the Accountant did all the paperwork to request the TVA Number etc.    We have to keep reciepts for absolutly everything and they came round to our farm and showed us how they wanted us to keep our paper accounts so that when we submit them they can process them quickly.  We also produce our own Invoices using the computer and again they advised on exactly what information must be on the invoices.

Hope this helps.

Rgds,  Mike L

 

 

 

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Richard,

I should have added (for clarification) that we are also registered as horse breeders and we use CERFrance in the Allier who are specialist Agricultural Accountants.  They have departments who are also Equine Accounting specialists.

If you have sufficient land it is also well worth considering applying for farming land subsidies, this year we have recieved 1,900€ for 19HA and we still have another payment to come in Dec this year.

Rgds,  Mike L

 

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Hi Mike,

thanks for the info. We will be seeing the accountant next week. What I am really keen to know is whether we need to have any TVA-chargeable income or can it really be zero for the first few  years , whilst we are waiting for the first stock to arrive and mature. i.e it will be 2-3  years until we start selling.

thanks again for your help

Richard

 

 

 

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