VATupdate

Guidance: Simplified liquidation and recovery regime – Scope

I. Taxpayers concerned

 1

The real simplified tax regime (RSI) of value added tax (VAT) concerns:

A. Liable persons not exceeding a certain threshold of turnover and tax payable

1. Assessment of the turnover threshold

has. Principle

10

The RSI is by right for companies whose annual turnover is between the limit provided for in a of 1° or in a of 2° of I of article 293 B of the CGI for the application of the deductible in VAT basis and the threshold provided for in 1° or 2° of Article L. 162-4 of the CIBS , subject to the amount of VAT payable declared for the previous financial year ( IA-1-b- 2° § 120 ).

The thresholds provided for in 1° and 2° of article L. 162-4 of the CIBS are applicable in mainland France and in the departments of Guadeloupe, Martinique and La Réunion. They are assessed excluding VAT and similar taxes. They are indicated in BOI-BAREME-000036 .

20

The turnover thresholds are updated every three years under the conditions set out in chapter II of title III of the CIBS and rounded to the nearest thousand euros ( CIBS, article L. 162-4 ).

30

To benefit from the RSI, taxable persons must not have achieved a turnover, adjusted if necessary in proportion to the operating time during the calendar year, greater than the thresholds provided for in 1° and 2. ° of article L. 162-4 of the CIBS , depending on whether they are involved in the delivery of goods, sales to be consumed on site, accommodation services or other services.

40

For the assessment of these turnover limits, reference should be made to some of the rules adopted for the application of the exemption regime based on VAT, such as:

  • the comparison with the appropriate limit depending on whether it concerns the sale of goods and the provision of accommodation or other operations (essentially the provision of services);
  • comparison with the two thresholds set by 1° and 2° of article L. 162-4 of the CIBS in the event of mixed activity;
  • the determination of the ceilings applicable to new companies and those which cease their activities;
  • the determination of the ceilings applicable in the event of multiple companies, etc. ( II-B-4-b § 300 to 320 of BOI-TVA-DECLA-40-10-10 ).

50

For these taxable persons, the RSI constitutes the normal tax system. However, it is not mandatory because the taxable persons in question can, on option, ask to be placed under the tax system according to their turnover and their real profit ( BOI-TVA-DECLA-20- 20-30-30 ).

b. Year threshold exceeded

1° Applicable rules

60

The RSI remains in principle applicable for the establishment of the tax due for the first year during which the turnover limit provided for by 1° and 2° of article L. 162-4 of the CIBS is exceeded.

70

However, this regime ceases to apply immediately if the turnover exceeds the limits set in 1° and 2° of Article L. 162-5 of the CIBS .

(80-90)

100

Companies subject to the RSI whose turnover exceeds the thresholds provided for in 1° and 2° of Article L. 162-5 of the CIBS cease to benefit from this regime from the first month of overrun and come under the normal real regime. tax from the first day of the current financial year.

110

For the assessment of threshold crossings, the annual turnover to be taken into account refers to the transactions that the company carried out during the calendar year, regardless of the dates of the corresponding receipts. Exceptional receipts, such as proceeds from the sale of fixed assets, are not taken into account.

However, companies falling under non-commercial profits, subject to the controlled declaration regime and not having opted to determine their profit according to the accrual accounting system, assess the crossing of the turnover thresholds of the ROI by retaining the receipts collected. On the other hand, holders of non-commercial income who have opted, in accordance with article 93 A of the CGI , for the keeping of accrual accounting, must assess the crossing of the RSI thresholds with regard to the receivables acquired, whatever the dates of the corresponding receipts.

Similarly, these limits are assessed by disregarding value added tax and similar taxes.

2° Declarative obligations

120

The companies concerned by the crossing of the thresholds provided for in 1° and 2° of article L. 162-5 of the CIBS during the financial year must electronically declare, the month following that during which the threshold was crossed, a declaration n °  3310-CA3-SD (CERFA n° 10963), available online at www.impots.gouv.fr, from the business tax service (SIE) on which they depend.

This declaration summarizes the transactions carried out since the 1st day of the financial year during which the overrun occurred, including the month of the overrun. The installments of VAT due during the financial year, whether they have been previously paid or not, are deducted from this declaration.

130

The company is required, after filing the summary statement, to file monthly statements for the normal real regime in accordance with the provisions of 2 of article 287 of the CGI .

Taxes assimilated to VAT are declared and paid online under the same conditions and according to the same periodicity as VAT. Businesses liable for these taxes must file annex n°  3310-A-SD (CERFA n° 10960), available online at www.impots.gouv.fr, at the same time as filing VAT declaration n° 3310-CA3 -SD .

140

The examples below illustrate the case of a taxable person who exceeds the thresholds set for the application of the RSI ( CIBS, art. L162-4, 1° and 2° and L. 162-5, 1° and 2° ) , distinguishing between two situations. In the first case, the accounting year coincides with the calendar year, in the second case, the year does not correspond to the calendar year.

150

Example 1: Fiscal year coinciding with the entire calendar year.

From January 1 N to December 31 N From January 1 N +1 to December 31 N+1 From January 1 N +2 to December 31 N+2

January 1 : RSI
April 10: exceeding the threshold of 1° or 2° of article L.162-4 of the CIBS: 

  • transition to the normal actual regime for the following financial year;
  • maintenance of the RSI for the current financial year.

September 10: exceeding the threshold of 1° or 2° of article L. 162-5 of the CIBS:

  • immediate transition to the actual tax regime (from 1 January N)

21 October (1) : submission of the summary statement (from January N to September N)

21 November (1) : filing of the monthly declaration (form no. 3310-CA3-SD ) relating to the month of October N

Normal real regime

Two cases:

  • if the turnover of N+1 is greater than the threshold of 1° or 2° of article L.162-4 of the CIBS:

    Normal real regime

  • if the turnover of N+1 is below the threshold of 1° or 2° of article L.162-4 of the CIBS:

    RSI

Exceeding the threshold – Fiscal year coinciding with calendar year

(1) The date of the 21 is cited as an example. The deadline for filing the declaration is determined by the provisions of article 39 of appendix IV to the CGI ( IB § 190 to 250 of BOI-TVA-DECLA-20-20-10-10 ).

160

Example 2: Fiscal year not corresponding to the calendar year.

The following examples illustrate the consequences of exceeding the RSI thresholds provided for in 1° and 2° of article L. 162-4 of the CIBS and article L.162-5 of the CIBS and lowering the turnover below these thresholds the following year for companies with an accounting year that does not correspond to the calendar year. In these examples, the fiscal year begins on April 1 and ends on March 31.

Whatever the closing date of the financial year, the turnover to be used for the application of the RSI must be assessed by taking into account the turnover achieved during the calendar year.

From April 1 N to March 31 N+1 From April 1 N +1 to December 31 N+1 From January 1 N +2 to December 31 N+2 From January 1 N +3 to December 31 N+3

April 1 N : RSI

June 10 N: exceeding the threshold of 1° or 2° of article L. 162-4 of the CIBS: 

  • maintenance of the RSI for the current financial year;
  • transition to the normal real regime from January 1 following the end of the current financial year, i.e. January 1 N +2

Simplified real regime

Before June 30 N+1 : filing of the printed declaration no.  3517-S-SD-CA12E (CERFA no. 11417), available online at www.impots.gouv.fr, relating to the financial year ended March 31 N+1

Normal real regime

February 21 N+1 (1) : filing of printed monthly declaration no. 3310-CA3-SD relating to the month of January N+2

Filing of a monthly declaration for the following months

May 3, N+1: filing of a printed declaration n° 3517-S-SD-CA12 (CERFA n° 11417) for the period from April 1 , N+1 to December 31, N+1 ( CGI, ann. II, art. 242 septies F )

Two cases: 

  • if the turnover for the calendar year N+2 remains above the thresholds of 1° or 2° of article L. 162-4 of the CIBS:

    Normal real regime 

  • if the turnover for calendar year N+2 again falls below the thresholds of 1° or 2° of Article L. 162-4 of the CIBS:
  • RSI from January 1 N +3.
Exceeding the thresholds set by 1° and 2° of article L. 162-4 of the CIBS – Accounting year not corresponding to the calendar year

(1) The date of the 21 is cited as an example. The deadline for filing the declaration is determined by the provisions of article 39 of appendix IV to the CGI (IB § 190 to 250 of BOI-TVA-DECLA-20-20-10-10).

It is recalled that, in accordance with the provisions of article 242 septies F of annex II to the CGI , companies filing a printed declaration no. 3517-S-SD-CA12 “on exercise” which become taxable under the actual on January 1 of the year following this fiscal year must submit a declaration for the period between the closing date of the last fiscal year entirely covered by the option and December 31 of the last tax year under the simplified regime.

From April 1 N to March 31 N+1 From January 1 N +1 to December 31 N+1 From January 1 N +2 to December 31 N+2

April 1 N : RSI

September 10 N: exceeding the threshold of 1° or 2° of article L. 162-5 of the CIBS:

  •  immediate transition to the actual normal regime from the 1st day of the financial year (i.e. from April 1 N)

October 21 N: submission of the summary declaration (from April N to September N)

21 November N: submission of the monthly declaration (form no. 3310-CA3-SD ) for October N

Filing of a monthly declaration for the following months

Normal real regime

Two cases: 

  • if the turnover for the calendar year N+1 remains above the threshold of 1° or 2° of article L. 162-4 of the CIBS:

    Normal real regime 

  • if the turnover for the calendar year N+1 falls below the threshold of 1° or 2° of article L. 162-4 of the CIBS:

    RSI from 1 January N+2

Exceeding the thresholds set by 1° and 2° of article L. 162-5 of the CIBS – Accounting year not corresponding to the calendar year

(170-200)

vs. Adjustment of turnover in the event of cessation of activity or creation

210

The turnover thresholds defined in 1° and 2° of article L. 162-4 of the CIBS and article L..162-5 of the CIBS for the application of the RSI are adjusted if there is takes place in proportion to the operating time of the business during the calendar year.

This adjustment applies in the event of cessation of activity or in the event of creation during the calendar year.

On the other hand, it is not necessary to apply the pro rata to the annual turnover of seasonal businesses, that is to say when the activity cannot, by reason of its nature or of its place of exercise, be practiced only during a certain part of the year.

The pro rata temporis adjustment of turnover is made according to the number of days of activity compared to 365 days.

220

The following examples illustrate the case of a company whose main business is to sell goods, objects, supplies and foodstuffs to be taken away or consumed on site or to provide accommodation, and whose accounting year corresponds to the year civil.

230

Example 1: Case of cessation of activity.

In this example, the termination occurs on May 31.

To determine the regime applicable in the year of cessation, the turnover limit threshold applicable to the simplified tax regime, set in 1° or 2° of Article L. 162- 5 of the CIBS according to the number of days of activity compared to 365 days.

The duration of activity of the company is 151 days (from January 1 to May 31).

The formula to be applied to determine the turnover limit threshold to be used is as follows:

(threshold of 1° or 2° of article L. 162-5 of the CIBS x 151 days) / 365 days = turnover limit adjusted pro rata temporis.

If the turnover achieved in the year of cessation is greater than the turnover limit threshold adjusted pro rata temporis, the company cannot benefit from the maintenance of the simplified regime for the year of cessation. It must therefore file a summary declaration according to the actual tax regime for the period from January 1 to  May 31, during the month of June.

A company covered by the normal real regime from 1 January is subject to the filing of a declaration within the period provided for in 4 of article 287 of the CGI , ie within 30 days of the cessation.

240

Example 2: Business creation case.

For example, the fictitious thresholds of 810,000 euros (to illustrate the application of the threshold of 1° of article L. 162-4 of the CIBS) and of 900,000 euros (to illustrate the application of the threshold of 1 ° of article L. 162-5 of the CIBS) are used.

In this example, the creation took place on June 2 N.

As of December 31, the company achieved a turnover of 480,000 euros.

The activity duration of the company is 213 days (from June 2 N to December 31 N).

To assess whether the upper limits of the simplified tax regime have been exceeded, the turnover thresholds are adjusted pro rata temporis:

  • for the assessment of the threshold of 1° of Article L. 162-5 of the CIBS, i.e. (900,000 euros x 213) / 365 = 525,205 euros. In this case, the amount of turnover achieved, ie 480,000 euros, being lower than the prorated threshold, the company falls under the simplified tax regime for its first year of activity;
  • for the assessment of the threshold of 1° of Article L. 162-4 of the CIBS, i.e. (810,000 euros x 213) / 365 = 472,685 euros. The company realized during the year of creation a turnover of 480,000 euros which is higher than the turnover limit of the simplified tax system. It is therefore subject, during the year of creation, to the simplified tax system. On the other hand, it will come under the actual tax regime from 1 January N+1.

If, on November 30 N, the company achieves a turnover of 530,000 euros, it finds itself placed under the normal real regime since the beginning of its activity. It must therefore file a summary declaration from June 2 to November 30, during the month of December and a monthly declaration for the month of December.

2. Assessment of the threshold of 15,000 euros of VAT payable

has. Principle

250

The simplified tax regime applies automatically to companies whose turnover does not exceed the thresholds provided for in 1° and 2° of Article L. 162-4 of the CIBS and Article L. 162-5 of the CIBS and whose amount of tax payable for the previous year is below the threshold of 15,000 euros provided for in 3 bis of article 287 of the CGI and in article L.162-7 of the CIBS .

On the other hand, companies whose turnover is below the limits of the RSI but whose amount of tax payable for the previous year is greater than 15,000 euros must file the monthly declaration provided for in 1 of Article 287 of the CGI.

b. Methods for determining the threshold of 15,000 euros

260

In order to determine whether the threshold of 15,000 euros has been crossed, reference should be made to the amount entered on the “VAT due” line of annual declaration no. 3517-S-SD-CA12E .

270

A company having precise knowledge of the exceeding of the threshold only at the time of the filing of the annual declaration of VAT n° 3517-S-SD-CA12E relating to the last financial year, it is accepted, by tolerance, that the first monthly form n° 3310-CA3-SD is filed for the tax period which runs from the 1st day of the financial year until the month of filing of the annual VAT declaration.

1° For the financial years ending on 31 December

280

The annual declaration referred to in 3 of article 287 of the CGI filed no later than the second working day following May 1 makes it possible to determine whether the person liable falls automatically under the simplified tax regime for the fiscal year beginning on January 1 of the same year.

290

Example : A taxpayer submits on May 5 N his VAT return no.  3517-S-SD-CA12 relating to the financial year ending on 31/12/N-1 and the amount of “VAT due” is greater than 15,000 euros . This is no longer subject to the simplified tax regime for its financial year beginning on 1 January N. By tolerance, it must then teletransmit at the latest between 15 and 24 June N (depending on its deadline for filing provided for in article 39 of appendix IV to the CGI ) a VAT return no.  3310-CA3-SD relating to the period from January 1 to  May 31 N (declaration relating to the month of “May N”). He then declares the VAT every month.

2° For fiscal years ended during the year

300

By tolerance, the tax threshold payable is assessed on the basis of the amount of tax payable declared for the previous financial year.

Thus, the declaration referred to in 3 of article 287 of the CGI filed within three months of the end of the financial year makes it possible to determine whether the person liable falls automatically under the simplified tax regime for the last open financial year.

310

Example: The taxpayer submits on June 30 N his VAT return no.  3517-S-SD CA 12 relating to the financial year ending on 03/31/N and the amount of “VAT due” is greater than 15,000 euros. This is no longer subject to the simplified tax regime for its financial year opened on April 1 N.  By tolerance, it must then teletransmit at the latest between July 15 and 24 N (depending on its deadline for filing provided for in article 39 of appendix IV to the CGI ) a VAT return no.  3310-CA3-SD relating to the period from January 1 to  June 30 N (declaration relating to the month of “June N”). He then declares the VAT every month.

vs. Amount of VAT payable once again falling below the threshold of 15,000 euros

315

When the amount of VAT payable for the previous year or financial year falls below the threshold of 15,000 euros again and if the turnover does not exceed the thresholds provided for, the taxable person then automatically comes under the regime. simplified tax from the 1st day of the following financial year. Under these conditions, if he does not wish to continue to come under the normal real regime, he must notify his wish to come under the simplified tax regime, by post or email, to the SIE on which he depends. The taxable person concerned is thus subject to this new regime from the 1st day of the financial year during which he informed his SIE.

B. Taxpayers who have opted for the payment of VAT

320

The simplified tax regime is also applicable to taxpayers automatically placed under the VAT exemption regime who have opted to pay the tax.

The exemption regime and the terms of the option for the simplified tax regime are examined in BOI-TVA-DECLA-40-10 .

II. Case of exclusion from the RSI

A. Taxpayers excluded from the benefit of the RSI

1. Persons engaged in occult activity

330

Pursuant to the provisions of article 302 septies A ter B of the CGI and 2° of article L. 162-9 of the CIBS , the RSI is not applicable to natural or legal persons and groups of persons governed by the law or de facto who carry out a hidden activity within the meaning of the second paragraph of article L. 169 of the book of tax procedures (LPF) .

2. Persons who have been the subject of a flagrance tax procedure

340

The taxpayer who has been the subject of a flagrance procedure under the conditions set out in article L.16-0 BA of the LPF is excluded from the simplified VAT tax regime ( CIBS, art. L.162-9 , 1° ) for the year or financial year during which the procedure is implemented.

3. New businesses in the building sector

has. Scope

350

Article L.162-2 of the CIBS excludes from the RSI new companies in the building sector.

This system is aimed at companies which are created, take over an activity or opt for a real regime and which carry out construction, building and other real estate works, including repairs, cleaning, maintenance and repair of buildings. and facilities of a real estate nature.

360

This applies to companies carrying out work:

  • construction of buildings and other real estate works;
  • equipping buildings with the effect of permanently incorporating the installed equipment or materials into the buildings;
  • rehabilitation and repair of buildings and installations of a real estate nature.

370

This exclusion from the RSI is limited to the year of creation, option for a real regime or recovery of activity and the following year. These companies can then request to benefit from the simplified tax regime, subject to compliance with the conditions ( IA § 10 to 315 ), from January 1 of the second year following that during which the company began or resumed. the activity concerned or that during which the option for the payment of VAT was exercised (CIBS, L. 162-2, al. 2).

This request is made no later than January 31 of the year for which the taxpayer wishes to benefit from the simplified tax system.

380

Example: A company in the construction sector is created on January 15 N. It must come under the normal real regime and must electronically declare VAT declarations no. 3310-CA3-SD on a monthly basis for the period between January 15 N and December 31 N+1. If its turnover for year N+1 is lower than the limits of the simplified tax regime and the amount of VAT paid during year N+1 is less than 15,000 euros, it may opt no later than 31 January N+2 for the simplified tax regime for its VAT transactions relating to year N+2. This option is not subject to any formalism and can be formulated on free paper.

b. Application rules

1° Businesses in the building sector that are being created

390

For companies that begin their activity, these must fall under the normal real regime in terms of VAT.

400

By default, the company is subject to the filing of VAT declarations on a monthly basis.

However, in application of article 287 of the CGI , if the company considers that the VAT paid annually is less than 4,000 euros, it can opt for a declaration and a quarterly payment ( IA-1-a § 10 of the BOI- VAT-DECLA-20-20-10-10 ).

2° Companies in the building sector exempt from VAT which opt for a real regime

410

Pursuant to Article 293 F of the CGI , taxable persons likely to benefit from the exemption mentioned in Article 293 B of the CGI may opt for payment of VAT. The latter must come under the “real normal” regime in terms of VAT.

3° Companies in the “dormant” building sector that are resuming an activity

420

Pursuant to Article R. 123-46 of the Commercial Code , all merchants are required to declare their temporary cessation of activity online at the one-stop shop for business formalities.

A taxable person, who indicates that he is resuming an activity for which he is liable for VAT, must fall under the “normal real” regime in terms of VAT.

B. Transactions resulting in exclusion from the application of the RSI

1. Intra-community acquisitions, imports and exits from suspensive regimes mentioned in 2° of I of article 277 A of the CGI

425

In accordance with 3 ter of article 287 of the CGI , taxpayers eligible for the simplified tax regime are required to file monthly declarations of turnover as soon as they carry out imports, intra-community acquisitions or exits from regimes. suspensions mentioned in 2° of I of article 277 A of the CGI ( CIBS, art. L. 162-8, 1° ).

It should be noted that since the monthly deposit obligation is only established for VAT purposes, operators carrying out imports, intra-Community acquisitions or withdrawals from the suspensive regimes mentioned in 2° of I of Article 277 A of the CGI will be able to continue to benefit from the simplified regime for the taxation of their profits.

These operators are therefore placed in a similar situation to those liable for industrial and commercial profits eligible for the simplified tax regime who have opted for the so-called “mini real” regime and benefit from the related obligations, including the option of quarterly declaration. when the amount of VAT due is less than 4,000 euros ( I § 20 to 110 of BOI-TVA-DECLA-20-20-30-30 ).

2. Other operations excluded from the application of the RSI

430

Article 204 quater of Annex II to the CGI provides for exceptions to the application of the RSI in terms of VAT.

These exceptions are motivated by the particular methods of taxation of certain operations or the irregular nature of their execution, which practically prohibit any significant reference to the previous year for the calculation of monthly or quarterly payments.

440

The exceptions concern the following operations:

  • transactions referred to in I of article 257 of the CGI  ;
  • operations carried out on an occasional basis, including charitable or support events organized by non-profit organizations designated by a of 1° of 7 of article 261 of the CGI .

III. Taxes affected by the RSI

450

The RSI applies not only to VAT but also to similar taxes which, on the one hand, obey the same rules as VAT and, on the other hand, are based on turnover.

Given the conditions of application of these latter taxes and the persons who are liable for them, the simplified regime is applicable to the taxes appearing in box IV of declaration no. 3517-S-SD-CA12E .

If a tax must be declared and it does not appear in this list, the taxpayer must indicate its title and its amount in box IV of declaration n° 3517 -S-SD-CA12E .

It should be noted that these taxes are only payable by a limited number of taxpayers likely to be placed under the RSI.

460

The turnover taxes owed by the taxpayers subject to the RSI are declared and liquidated on the VAT return mentioned in 3 of article 287 of the CGI filed for the period in question.

Thus, the taxpayers liquidate all of the tax due on the annual VAT return n° 3517 -S-SD-CA12 filed on the second working day after May 1 of the year following that for which the VAT is due. .

Taxable persons with an accounting year that does not correspond to the calendar year proceed to the liquidation of the tax on their annual VAT declaration n° 3517 -S-SD-CA12E filed within three months of the end of the financial year.

470

No compensation with VAT can be made. Taxpayers in a creditor situation with regard to VAT cannot abstain from paying the amount of taxes for which they are liable by reducing the amount of their VAT credit accordingly.

Source: gouv.fr

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