France has adopted the new anti-fraud law which introduces, among other things, a responsibility for e-commerce platforms in the field of VAT.
The new law Avenir professionnel which passed 5 September 2018, brings changes for the posting of employees. It strengthens the sanctions against posting fraud but eases employers’ obligations to report posted employees.
The withholding tax will come into effect in France on January 1, 2019. Employees who are french resident will have their income tax deducted directly by their employer from their net salary.
The anti-pollution sticker (Crit’Air in french) aims to limit pollution in large cities. It classifies the vehicles in 6 colors and levels according to their age and their motorization. Private vehicles are not the only ones concerned.
The Internal Consumption Tax on Energy Products (TICPE) replaces the Internal Consumption Tax on Petroleum Products (TIPP).
Posting of workers
The harvest season is coming and you want to hire foreign workers in France or Italy? This is obviously possible, and is called the posting of workers. Just follow a few rules that we explain in this article.
A company not established in France that posts employees in France has declarative obligations, but also the obligation to keep documents to present in case of control by the Labor Inspectorate.
The Internal Consumption Tax on Energy Products (formerly TIPP) is a tax levied on petroleum products as well as on energy products. Note that the TICPE also includes fuels and heating fuels.
VAT rates fall under the framework of the VAT directive of 28th November 2006. Because VAT has not been harmonised at the European level, every year the European Commission publishes the official list of VAT rates applied in each member country. You will find below the list of VAT rates for 2018.
The People’s Republic of China is the world’s leading exporter, ahead of the United States, it is also the country that exports the most to the European Union. Exchanges between China and the European Union thus reach more than one billion euros per day.
In order to inform companies about the application of the Comprehensive Economic and Trade Agreement (CETA / CETA), the Quebec Federation of Chambers of Commerce (FCCQ) offers a program of training and conferences, in the form of a “tour”, in the main regions of Quebec.
In 2016, the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union entered into provisional application. This is one of the most important agreements signed in recent years, and many expect a similar agreement between the United States and the European Union.
French VAT registration and the appointment of a tax representative is a necessary step for companies established outside the European Union that import and / or sell their products in France, including through e-commerce platforms.
Posting of workers
In its edition of February 2018, the IN Antipolis magazine (formerly Select Antipolis) dedicates two pages to the posting of workers and ASD Group’s expertise on the subject.
The trade of goods declaration, known as DEB in France and Intrastat in the other European countries, concerns intra-community trade in goods between Member States.
The prior declaration of posting is used by foreign companies posting workers to France. Below are the key points required for an understanding of the prior declaration of posting and how to obtain it.
French legislation is the strictest in Europe when it comes to fraud in relation to foreign posted workers. Inspections have tripled in 2 years and will be strengthened in 2017.
Below is a summary of the VAT system and the requirements in the triangular intra-community operations for the delivery of goods between persons or entities liable to pay VAT. It is important to note that we do not include here products subject to a specific tax regime (for example, products subject to excise duty).
In France, the trade of goods declaration, or DEB, consists of both statistical (Intrastat) and fiscal information. In the other member countries, Intrastat is only statistical and is accompanied by an additional tax declaration to determine the trade of goods between member countries.
To combat the use of illegal labour and unfair competition, the French Government has put in place a professional identity card in the construction sector. The construction worker’s card is a requirement for every posted worker doing, managing or organizing construction work or civil engineering in France.
Case law: The Court of Cassation made a decision on the capacity of the person eligible to be appointed by an employer with no establishment in France to make declarations and payment of contributions which the employer is required to make when he hires employees in France.
Many companies established outside the European Union seek our services to recover VAT paid in France on business expenses, such as transport, exhibitions, importation etc.
As an illustration of this topic, we shall consider the case of a Swiss company which has incurred expenses in France and which submits a VAT refund request to the French tax authority following its participation in a business fair.
WHAT ARE THE CONDITIONS FOR SECURING A VAT REFUND IN FRANCE?
A company established and subject to tax in the European Union which has incurred VAT on specific expenses in France can recover its VAT as long as it does not conduct any taxable operations in the country.
The Web TV of the French Chamber of Commerce of Nice Riviera interviewed our General Manager Magalie Delangue to present our company’s services and our development. You can watch the entire interview here :
Interviewed March 14th, 2017
Posting of workers
Starting from 1st July 2017, a new decree reinforces the rules regarding the posting of employees, in particular in the Building & Public Works and Transport sectors, to combat illegal international services. Indeed, the number of workers posted has increased over the past few years.
Starting from 1st of July 2017, new rules will come into force regarding mandatory declarations and displaying information for the posted workers. Public and private project owners and principals will see their responsibilities increasing.
Since the arrival of the new President, Mr. Macron, who took the office on January 1, 2018, the government has been working, among other things, on redesigning the tax legislation.
The affixing of the vignette Crit’Air on the windshield becomes more and more common in France. After Paris, Grenoble, Lyon and Lille, it is Strasbourg and its 33 surrounding municipalities which set up this system.
Discover how ASD Group can boost your international growth in the article “ASD Group: Understanding international growth and working with pros”, published by the Select Antipolis magazine.