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Is it possible for auto-entrepreneurs to deduct from their tax rates by donating the product they sell?


Susie
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I sell a headlouse product, but I also want to donate some of this same product, as my goal is to rid the entire planet of the little buggers. Because you can't just get rid of the ones on your head, if the ones on the head next to yours are still there, as they'll simply keep the cycle of reinfestation going. And, as many people can't, or won't, rid themselves of headlice, due to the expense, the only reasonable solution is to help them out and solve the itchiness for all.

As I'm an auto-entrepreneur, my expenses can't be deducted, making the donation of products a bit expensive for me. I do have to eat, pay bills, and keep a roof over my head.

My question is, then, which is the best way for me to be able to affordably donate?

If I'm not able to deduct donations from my taxes, would creating an association, and then marking a percentage of each sale as a donation to the association, be a way to avoid part of the AE tax?

Any creative and legal solution would be appreciated...by me and the ones scratching their heads.
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You said it yourself, you are an AE and cannot deduct expenses, the abattement that you recieve takes into account your notional expected expenses which would include charitable donations, those percentages are very generous, if they are not so for your particular business circumstances then you should opt for a regime réel.

 

You cannot have your cake and eat it other than hiding and not declaring part of your turnover but that is as bad as "avoiding part of the AE tax" an unwise choice of words to be using.

 

And I say this as someone that gives away for free part of my product (accomodation) yet declares the money that I would otherwise have recieved and pays taxes on what is effectively a charitable donation, there is however method in my madness in this instance.

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Ok, thanks.

(I used the word, "avoid", because that other one, "evade", is something I really don't want to be doing.)

I'm still chewing on the association side, the idea was presented by the person giving the AE class at the CIC, although she only said to go and form an association and then come back. In hindsight, I should have corralled her after the class, and asked exactly what she meant. At any rate, I'm not going back until I explore the options...whatever they may be.

So, my next question is; how would an association for this kind of thing work?

Would it be run alongside of my sales, with kit supplies being bought/donated, to be distributed as the kits were made up...could I ask kit buyers/general public to donate, or could I sell my product as 'buy two and we will give one'?

Can associations be so closely affiliated with business?
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No idea but I would be very very sceptical of anyones competence who's job is to advise and accompany new businesses in France, I came across them in the UK for the enterprise allowance and they had no idea whatsoever of the real commercial world but in hindsight they were gods compared to their équivalents here in France.
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I think I am right in saying that an association can only be run be a citizen of the EU, [If I am wrong I am sure someone will correct me.]

With Brexit looming an association may not be a solution to the problem, assuming you are British.
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If you run a business selling a product and an association alongside it supposedly giving away the product but also asking for donations you are putting yourself in the cross hairs of a society that does not believe anyone does anything unless it benefits themselves, you will be asking for a contrôle, or a denonciation which they will have to investigate, you are setting yourself up for no end of grief.

 

If you want to give away your product then do so, why add cost complication and grief to a charitable act?

 

An association that exists to give stuff away and not to enrich itself with subventions will stick out like a sore thumb in France and be met with great suspicion and scepticism.

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We think we must be missing something here. The net "taxable" amount for you as an AE is, say, "x". Are you saying that you (OP) are paying income tax on this "x" or just social contributions?

Nothing will make the social contributions less and income tax actually payable depends on your total income. We can see no way that your proposed "donations" can come off your income tax. In any case the cost to you of the donation is actually the true cost of making the kits not the notional amount for AE.  If you don't sell something but give it away then you will,not be "taxed" on the value of that item.

There are a very few charities that give rise to a tax deduction (i.e. Restos du coeur) but not all.

As Chancer said, if you want to give some away: do so.  If you cannot afford to do it perhaps you should up your prices.

Your question is so confusing and we are both accountants!  In any case there are costs in having an association.

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[quote user="andyh4"]I think I am right in saying that an association can only be run be a citizen of the EU, [If I am wrong I am sure someone will correct me.]

With Brexit looming an association may not be a solution to the problem, assuming you are British.[/quote]

At the moment you can only have a microenterprise if you are an EU citizen
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On paper maybe but in practice there is nothing to stop them and I know of several AE's that dont have a titre de séjour, indeed some were encouraged to declare as AE as the first stage in moving away from the statute of sans papiers, the big clampdown on benefits fraud around Valenciennes concerned principally non EU immigrants registered as AE/ME.

 

And if someone is told they cannot declare under AE then France would lose the taxes and social charges payable, on the declared income said person could in any case easily re-register as AE without formality as a non resident.

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