T.V.A.

[Chippiepat]

I am about to register as micro enterprise as I have a barn to convert for a friend, as micro I will not be registerd for tva.

2 questions; will I be able to purchase materials at the 5.5% rate?, 2ndly having just done a search on the forum for t.v.a.I read that a t.v.a.receipt is required to offset expences against capital gains, does this mean that all the works I carry out on the renovation although invoiced & carried out by me as registered artisan can not be claimed against c.g.? seems a tad unjust.

Any light thrown on this much appreciated,

Pat

[Val_2]

Building materials purchased at source are at 19,6% NOT 5,5% which is why you have claim it back against the 5,5% for the actual work carried out and this is then verified at the end of the financial year when the TVA office sends the Exercise for the previous year paperwork to be verified by the accountant. If you are not TVA registered in France then you cannot charge TVA, reclaim it at the lower rate from customers. Your client will require a proper invoice with your TVA reg number, SIRET etc to be able to claim any expenses back against CGT. If you are not registered,basically you cannot charge.

[Nick Trollope]

Coupla points;

A Micro can register for TVA (They don't do so, normally).

As Val says, if you ain't registered, you can't claim. However, your invoices (sans TVA) are just as valid as anyone elses, for CGT purposes. (Provided you have an appropriate SIRET, of course).

Interesting anomoly - in France, even if you are not registered for TVA, you can have a TVA number - this means that, if you buy something outside France, you will be supplied it nett of TVA, which you should pay at French rates, when you import it (then reclaim it, of course). However, as you don't fill in a TVA return, there is no way of reporting the fact that you have TVA to pay, so you get a 17.5% discount on everything you buy from the UK, for instance (or 21% from Eire, etc etc).

 

 

[Chippiepat]

thanks for reply Val,

I understand the tva bit, what I'm unsure of is that I read another post somewhere that said only invoices from a "t.v.a. registered artisan" can be offset against capital gains? as I will not be t.v.a. registered & my invoices will show no t.v.a. will my client still be able to offset the renovation cost against c.g .

Pat