VATupdate

Guidance: Tax base and tax point, special rules

The comments contained in this document are subject to public consultation from January 18, 2023 to April 15, 2023 inclusive to allow interested persons to send their possible comments to the administration. These comments must be made by email to the following address: [email protected] . Only signed contributions will be considered. As of this publication, you can take advantage of these comments until their possible revision at the end of the consultation.

Related news item: 01/18/2023: VAT – Public consultation – New rules for declaration and payment of import VAT (law n° 2019-1479 of December 28, 2019 of finance for 2020, art. 181)

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I. Operations giving rise to the establishment of statements or successive receipts

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Pursuant to a bis of 1 of Article 269 of the General Tax Code (CGI) , for deliveries of goods (with the exception of those made under contracts [hire-purchase or installment sale], together with a clause according to which the ownership of these goods is normally acquired by the holder at the latest upon payment of the last installment, II-C § 90 to 130 of BOI-TVA-BASE-20-10 ), as well as for provision of services which give rise to the establishment of statements or successive receipts, the chargeable event for value added tax (VAT) occurs at the time of the expiry of the periods to which these statements or receipts relate.

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In addition, the a of 2 of article 269 of the CGI introduces two elements:

  • the possibility for the suppliers concerned, at their option, to pay the tax only at the time of the debits;
  • the intervention in any event of the payment of the tax from the collection of installments, when requested, before the date of the chargeable event or debit.

A. Payment rules applicable to deliveries giving rise to the establishment of statements or successive receipts

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1. Transactions concerned

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These are deliveries of moveable goods made under “scheduled performance” contracts which do not relate to finished or precisely determined quantities of goods, but under the stipulation of which the quantities of goods delivered depend only on one of the parts.

The supplies of goods such as gas, electricity, water, heat and cold which are carried out on a continuous basis within the framework of subscription contracts are therefore essentially covered.

These goods are expressly considered as tangible personal property by 2° of II of article 256 of the CGI ( IA-2 § 30 of BOI-TVA-CHAMP-10-10-40-10 ).

The payment rules concerning them apply to all sums claimed in return for deliveries made to customers and constituting an element of the price of these goods (subscription costs, consumption, incidental costs, participation of subscribers in investments and in particular in connection fees, etc.).

2. Payability of the tax at the end of the periods to which the statements or receipts relate

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For the transactions concerned, the tax is therefore in principle payable from the last day of the consumption period covered by the invoice.

Example: Consider an electricity bill dated May 15 and concerning a consumption period from January 1 to April 30. The tax is, in this case, due on April 30.

3. Possibility of payment according to debits

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For practical reasons, the administration has accepted that the chargeability of the tax relating to the sale of goods giving rise to the establishment of statements or successive receipts only occurs on the date of the invoicing established following the reading of the meters, that is to say at the time of the debits.

The possibility of deferring the payment of the tax until the time of the debits is expressly provided for by the second paragraph of a of 2 of article 269 of the CGI .

For taxpayers who have exercised the option, the debits therefore constitute the legal liability for the tax.

The debit occurs when the receivables are registered in the customer account and therefore most often coincides with the date of issue of the invoice.

Example: If, in the example of IA-2 § 50 , the supplier is authorized to pay the tax at the time of the debits, this is due on 15 May.

The option must be expressly formulated by simple letter which must be sent by the taxpayers to the tax department to which they belong for the filing of their turnover declarations.

The option only applies to transactions which are normally payable at the end of the periods covered by the accounts ( IA-1 § 40 ).

It takes effect from the first day of the month following that during which it was exercised and remains valid as long as the taxpayers do not express, by written request, their desire to waive this option.

Taxpayers who have exercised the option must imperatively mention it on the invoices or documents in lieu thereof, which they issue to their customers.

4. Collection of deposits

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The second paragraph of a of 2 of article 269 of the CGI provides that VAT is due in any event upon receipt of installments and up to their amount when requested before the occurrence of the chargeable event. or flow.

The suppliers concerned must therefore pay the tax in respect of the installments collected before the expiry of the periods to which their statements relate, or before the debits when they have been authorized to pay the tax only on this date.

Are covered by these provisions all payments, advances or installments, to be worth on the price stipulated in the contract.

Example: In the example of IA-2 § 50 (no debit option), any amount collected before April 30 must give rise to payment of the tax.

In the example of IA-3 § 60 (debit option), any sum received before May 15 must give rise to the payment of the tax.

B. Consequences of these rules for customers

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In accordance with the provisions of 2 of I of article 271 of the CGI , the right to deduct arises when the deductible tax becomes payable by the taxpayer. Among taxpayers, purchasers of property mentioned in IA-1 § 40 , and subject to other conditions of common law, the right to deduct therefore arises:

  • at the end of the period to which the statement relates;
  • or upon debit when the option has been exercised;
  • or, in the event of an advance or installment occurring before these two dates, from the payment, but provided that this gives rise to the issue by the supplier of a document mentioning the VAT under the conditions usually required for the opening of the right of deduction.

C. Payment rules applicable to the provision of services giving rise to the establishment of statements or successive receipts

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The principles set out in III § 30 of BOI-TVA-BASE-20-20 should be applied for these services.

II. Goods delivered or services rendered to an intermediary acting in his own name or by an intermediary acting in his own name

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Paragraph 1 of Article 269 of the CGI provides that, for deliveries and services which are deemed to be made to a taxable person or by a taxable person pursuant to V of Article 256 of the CGI and III of Article 256 bis of the CGI , the triggering event occurs when the delivery of goods or the provision of services in which the taxable person is involved is carried out.

The taxable persons covered by this provision are the intermediaries who act in their own name.

The delivery of goods or the provision of services for which the generating event serves as a reference is that which occurs between the intermediary and the co-contracting third party (operation which is the object of the intermediary).

The operative event for the delivery of goods or the provision of services deemed to exist upstream (“sale” mediation) or downstream ( “purchase” mediation ) is the same as the operative event of the transaction referred to in preceding paragraph.

Example 1: Intermediation for the sale of goods or services: if the event giving rise to the delivery of goods (or the provision of services) carried out by the intermediary for the benefit of the co-contracting third party occurs on March 30, the event giving rise to the delivery of goods (or provision of services) deemed to have been made by the principal for the benefit of the intermediary also takes place on March 30.

Example 2: Intermediation in the purchase of goods or services: if the triggering event for the delivery of goods (or the provision of services) carried out by the co-contracting third party for the benefit of the intermediary occurs on May 25, the triggering event of the delivery of goods (or the provision of services) deemed to have been carried out by the intermediary for the benefit of the principal takes place on 25 May.

Example 3: When an intermediary is involved in the supply of goods from another Member State, the triggering event for the intra-Community acquisition made by this intermediary occurs when the delivery to the co-contracting third party or to the principal is made.

III. Goods delivered or services rendered by authors and performers of intellectual works and performing artists

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Authors and performers of intellectual works as well as performing artists are automatically subject to VAT ( BOI-TVA-CHAMP-10-10-60-20 and BOI-TVA-CHAMP-10-10-60 -30 ).

A. Principle

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Pursuant to the provisions of 2 of article 269 of the CGI , the tax is payable:

  • for deliveries of goods, upon delivery;
  • for the provision of services, including the transfer of rights, when collecting the installments, the price or the remuneration.

B. Clarifications and application to specific cases

1. Delivery of works

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Sales of works must be subject to VAT upon delivery (or upon legal transfer of ownership if it precedes delivery) on the full price, regardless of the date of receipt of this price. Advances or installments received before delivery do not give rise to the payment of VAT.

2. Operations of authors who create commissioned works (public or private commission)

has. Elements likely to be covered by the author’s remuneration

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The author’s remuneration is likely to cover various elements which may or may not be the subject of separate contracts or prices.

1° With regard to plastic works

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May be concerned:

  • study and design work materialized by the submission of a project;
  • the transfer of representation or reproduction rights on the elements of the project (considered as a work of the mind as such);
  • the production and delivery of the work when the author takes care of this production himself, with or without the help of subcontractors;
  • or the assignment of the right to create the work (right of reproduction) if the sponsor is responsible for its production and, where applicable, monitoring of the production by the author;
  • performance and reproduction rights to the final work.
2° With regard to intangible works

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May be concerned:

  • study, design and implementation work required to satisfy the order (this work may be referred to according to the usages specific to each profession as “shooting fees”, “implementation fees”, ” fees for carrying out the order”, etc.);
  • performance and reproduction rights to the work.

b. Applicable VAT rules

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When the study, design or implementation work referred to in the first indent of III-B-2  a-1° § 150 and in the first indent of III-B-2-a-2° § 160 are followed an assignment of the right of representation or reproduction (in the second and fifth indents of III-B-2-a-1° § 150 and in the second indent of III-B-2-a-2° § 160 ), l he whole operation is analysed, with regard to VAT, as an assignment of rights and therefore a provision of services.

Example: Design of a project and assignment of the right to publish the elements, design of a project and assignment of the right to produce the work, or production of a photographic shot and assignment of the right to publish the photograph .

When the study, design or implementation work referred to in the first indent of III-B-2-a-1° § 150 and the construction work referred to in the third indent of III-B-2  a-1° § 150 are followed by a delivery of work, the entire operation is analyzed as a delivery of goods.

Example: Design of a project, production and delivery of the work by the artist.

When the study, design and implementation work referred to in the first indent of III-B-2-a-1° § 150 and in the first indent of III-B-2-a-2° § 160 are not followed neither by an assignment of rights, nor by the delivery of a work (order remained unfulfilled but having given rise to the payment of remuneration), the operation is analyzed as an ordinary provision of services. However, it is accepted, for the application of the rate rules ( IV § 200 et seq. of BOI-TVA-LIQ-30-20-100 ) and deductible, that this service be treated as an assignment of rights.

When the delivery of a work is accompanied by the transfer of the right of representation or reproduction, the entire operation is analyzed as a delivery of goods. If the invoicing distinguishes between the price of the delivery of the work and that of the transfer of rights, the rules specific to each of these categories of operation apply separately.

The performance follow-up operations incidental to the transfer of the right to perform the work follow the rights transfer regime.

3. Withholding mechanism applicable to copyright

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The device is exposed to II-C § 240 and 250 of BOI-TVA-BASE-10-20-40-30 .

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Payability occurs according to the procedures set out in BOI-TVA-CHAMP-10-10-60-30 (in particular advances or installments on rights must be subject to withholding as soon as they are paid to the author).

The tax must be declared and paid for the tax period during which the rights are paid to the author ( II-C § 250 of BOI-TVA-BASE-10-20-40-30 ).

However, when a collective management organization acts as a taxable intermediary on its sole remuneration, liability arises when the rights are collected on behalf of the author.

4. Possibility of paying the tax according to the debits

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Authors and performers of intellectual works and performing artists may, on option exercised under the conditions of common law, pay the tax according to the debits, i.e. when entering the corresponding sums in the debit of customer accounts ( I § 20 and following of BOI-TVA-BASE-20-50-10 ).

IV. Self deliveries

A. Self-supply of goods

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Article 175 of appendix II to the CGI establishes on the date of the first use of the property the chargeability of the tax due on account of deliveries to oneself payable pursuant to II of article 257 of the CGI .

B. Provision of services to oneself

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Article 175 of appendix II to the CGI sets the due date for the VAT due for the provision of services to oneself, the taxation of which is provided for in II of article 257 of the CGI . The tax due for the provision of services to oneself is due when the provision of services is made.

V. Sales and deliveries made by farmers

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By way of derogation from the general rule, the liability for VAT is constituted by the collection of the price with regard to sales and deliveries made by farmers.

For more details, please refer to BOI-TVA-SECT-80-30-30 .

VI. Tobacco

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Under the terms of article 298 quaterdecies of the CGI , the chargeable event for the VAT applicable to sales of manufactured tobacco is that which is provided for by article L. 311-15 of the tax code on goods and services relating to the duty of consumption of these same tobaccos.

Consequently, the chargeable event and the liability for VAT occur when it is released for consumption.

Pursuant to Article 286 B of Annex II to the CGI , the outcome of manufacturing means the exit of manufactured tobacco from production establishments.

VII. Imports

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Pursuant to Article 293 A of the CGI , the chargeable event occurs and the tax becomes payable when the good is considered imported, within the meaning of 2 of I of Article 291 of the CGI . For the definition of imports, reference should be made to BOI-TVA-CHAMP-10-30 , and for import territoriality to BOI-TVA-CHAMP-20-65 .

In order to determine the exact times when the chargeable event and the chargeability of import VAT occur, reference should be made to the rules relating to the origin and the chargeability of the customs debt, established by Regulation (EU ) No. 952/2013 of the European Parliament and of the Council of 9 October 2013 establishing the Union Customs Code (UCC) as well as, in the event of irregularity, European case law.

Council Directive 2006/112/EC of 28 November 2006 on the common system of VAT specifies that, as regards the chargeable event and the chargeability of VAT on imports, the Member States apply the provisions in force with respect to customs duties, whether or not the imported goods are actually subject to import duties.

Consistent case law of the Court of Justice of the European Union (CJEU) recalls that import VAT and customs duties have comparable essential features in that they arise from the fact of importation into the Union and the subsequent introduction of goods into the economic circuit of the Member States (in this sense CJEC, judgment of 28 February 1984, case 294/82 ; CJEC, judgment of 6 December 1990, case 343/89 and CJEU, judgment of July 11, 2013, case 273/12 ).

Customs legislation distinguishes cases of regular importation of goods from cases where their introduction into the European economic circuit results from non-compliance with customs rules on imports.

A. Generating event and liability for VAT in regular import situations

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The chargeable event for import VAT occurs when the customs debt arises. In cases where the imported goods are not subject to any customs duty, in other words in the absence of a customs debt, the chargeable event occurs when this debt would have arisen if the goods were subject to it.

In accordance with 1 of Article 77 of the UCC , the customs debt arises at the time of acceptance of the customs declaration, following the placement of “non-Union” goods subject to import duties under one of the following customs procedures: release for free circulation, including under the end-use procedure, or temporary admission with partial exemption from import duties.

A distinction should be made between acceptance of the customs declaration (UCC, art. 172), which takes place on the date of its filing if the formal conditions laid down for its filing are met, from acceptance of the customs procedure requested (release) for the goods listed thereon.

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The release of goods is the act by which the customs authorities make goods available for the purposes provided for by the customs procedure requested on the declaration.

Article 194 of the UCC states that when the conditions for placement under the relevant procedure are met, and provided that any restrictions have been applied and that the goods are not subject to prohibition measures, the customs authorities grant the release of the goods as soon as the particulars of the customs declaration have been verified or accepted without verification.

Article 195 of the UCC recalls in this respect that when the placing of the goods under a customs procedure results in the birth of a customs debt, the granting of the release of the goods is subject to payment of the amount of import duties or export corresponding to the customs debt or the provision of a guarantee to cover this debt.

The granting of release by the customs authorities therefore materializes the moment from which the customs authorities authorize an operator to export or dispose of the goods brought into the customs territory of the Union according to the conditions of the customs procedure requested (free release practice, temporary admission with partial exemption from import duties or any other special customs regime).

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It follows, firstly, that the customs debt on importation and, consequently, the chargeable event for VAT on importation only exist if the goods are actually placed under one of the regimes mentioned in 1 of l Article 77 of the UCC (release for free circulation or temporary admission with partial exemption from import duties).

Secondly, in the event of placement under the release for free circulation or temporary admission procedure with partial exemption from import duties, the date of the chargeable event for import VAT is that of acceptance of the declaration customs, even if the release took place on a different date. The date of acceptance is the date on which the filing of the declaration was accepted by the customs authorities (for the dematerialized filing, it is the date of validation in the computerized customs clearance system).

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Import VAT becomes payable upon granting the release of goods for which the import declaration requests their placement under the release for free circulation or temporary admission with partial exemption from duty. import.

In practice, this corresponds to obtaining the order for removal (BAE) authorizing the placing of the goods under one of the aforementioned regimes. Therefore :

  • in the case of a normal customs declaration, the import VAT is payable during the month of obtaining the BAE of the goods covered by the normal declaration;
  • in the case of a simplified customs declaration, the import VAT is also payable during the month in which the BAE is obtained for the goods covered by the simplified declaration, even if this declaration is attached to a global complementary declaration at course of the following month.

B. Generating event and liability for VAT in situations of irregular importation

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In situations of irregular importation, the chargeable event for VAT is in principle concomitant with the birth of the customs debt in accordance with Article 79 of the UCC . The latter provides that the customs debt arises:

  • when non-compliance with customs legislation or a condition of application of a customs procedure occurs (UCC, art. 79, 2-a). This hypothesis covers the cases of non-compliance provided for in a and b of 1 of article 79 of the UCC;
  • at the time of acceptance by the customs authorities of the customs declarations leading to the placement of goods under a customs procedure (UCC, art. 79, 2-b), when it appears a posteriori that the conditions of this procedure were not from the outset not met (CDU, art. 79, 1-c).

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However, in the situations set out in VII-B § 245 , the chargeable event for VAT only occurs if the goods have been introduced into the economic circuit of the European Union on the territory of France.

The CJEU recently recalled that it is not enough that a good has been the subject of breaches of customs regulations in a given Member State, which have generated a customs debt in that State on importation, to consider that the good entered the economic circuit of the Union in that Member State, when it is established that the same good was sent to another Member State, its final destination, where it was consumed. In this case, the chargeable event for import VAT occurs in the Member State where the good was actually released for consumption (in this sense CJEU, judgment of July 10, 2019, case 26/18 ).

In doing so, in certain specific cases of illicit introduction of goods into the customs territory of the EU, it is possible that the chargeable event for VAT does not occur concomitantly with the birth of the customs debt, but is shifted when the goods are considered to have entered the economic circuit of the Union.

This discrepancy between the event giving rise to the customs debt and the event giving rise to the VAT only applies, however, in the event of a situation of irregular introduction of goods and requires the fulfillment of specific conditions assessed, on a case-by-case basis, cases, by the supervisory authorities.

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When a customs debt arises as a result of non-compliance with customs legislation or a condition of application of a customs procedure, the payment of VAT is concomitant with the intervention of its generating event.

C. Examples of applications

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Example 1: An operator introduces goods into the customs territory of the Union and wishes to release them for free circulation. To this end, he files a customs declaration requesting the placement of the goods under this regime on 03/01/N.

After verification, release is granted on 10/01/N and the goods are considered imported.

The birth of the customs debt as well as the event generating VAT will be fixed on 03/01/N. Import VAT will become due on 10/01/N. The operator will therefore have to declare the corresponding amounts on his turnover declaration for the month of January to be submitted during the month of February.

Example 2: An operator introduces goods into the customs territory of the Union and wishes to place them under the customs warehousing procedure because he plans to re-export them. To this end, he submits a declaration of placement of assets under this regime on 04/06/N. After verification, the release is granted on 09/06/N.

Customs warehousing is a special customs procedure under which “non-Union” goods can be stored on the territory of the European Union without their introduction giving rise to a customs debt (these goods are not considered to be imported for application of VAT). The operator can therefore store his goods without having to pay customs duties or import VAT.

After being in a customs warehouse, the operator finally wishes to use part of the stored goods in the context of his economic activity on the territory of the European Union. To this end, he submits a new declaration requesting the placement of part of the goods under the release for free circulation on 03/09/N. After verification, the release is granted on 07/09/N and the goods in question are considered as imported for the application of VAT.

The origin of the customs debt as well as the generating event of the VAT will be fixed on 03/09/N. Import VAT will become due on 07/09/N. The operator will therefore have to declare the corresponding amounts on his turnover declaration for the month of September to be submitted during the month of October.

Example 3: An operator introduces goods into the customs territory of the European Union through an entry point located in France and wishes to place them under the inward processing procedure. To this end, he files a customs declaration requesting the placement of the goods under the active improvement regime on 10/02/N.

The inward processing procedure makes it possible to introduce “non-Union” goods into customs territory, to process them, to open them or to repair them before re-exporting them or releasing them for consumption without these goods being subject to import duties or other charges. Acceptance of the customs declaration by the customs authorities therefore does not give rise to a customs debt. Goods placed under this special customs regime are not considered imported for tax purposes.

However, after checking carried out a posteriori, the customs authorities realize on 01/03/N that one of the conditions required for placing the goods under the inward processing procedure was not met.

The birth of the customs debt as well as the chargeable event for VAT will be fixed on 10/02/N, the date on which the customs declaration was accepted. The liability for VAT, which in this situation will determine the starting point for default interest, is also on the date of acceptance of the declaration, ie 10/02/N.

Example 4: An operator brings goods into the customs territory of the Union and wishes to place these goods under the external transit procedure (UCC, art. 226). To this end, he files a customs declaration requesting the placement of the goods under this regime on 15/06/N.

The external transit procedure allows the movement of “non-Union” goods from one point to another in the customs territory of the Union without these goods being subject to import duties or other charges. Acceptance of the customs declaration by the customs authorities therefore does not give rise to a customs debt.

Following a check carried out on 26/06/N, the customs authorities note that an obligation linked to the external transit procedure for “non-Union” goods has not been complied with since 17/06/N.

The birth of the customs debt as well as the event generating VAT will be fixed on 17/06/N, the date on which the finding of non-compliance with the obligation occurred. The liability for VAT, which in this situation will determine the starting point for interest on late payment, is also on the date of birth of the customs debt, ie 17/06/N.

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VIII. Regime of the press and its suppliers

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Under the terms of article 298 h of the CGI , VAT becomes payable when the installments or the price are collected with regard to the sales of the publications referred to in article 298 septies of the CGI as well as the sales of papers produced by the professional press paper company.

With regard to intra-Community acquisitions relating to these products, VAT becomes payable under the conditions set out in d of 2 of article 269 of the CGI ( II § 20 and following of BOI-TVA-BASE-20-30 ).

The press regime is exposed to BOI-TVA-SECT-40 .

IX. Warrant transactions

A. Single-use vouchers

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Pursuant to 1 of Article 256 ter of the CGI , each transfer of a single-use voucher made by a taxable person acting in his own name is considered to be the delivery of goods or the provision of services to which the voucher relates ( BOI-VAT-CHAMP-10-10-40-50 ).

Therefore, with each transfer of the voucher made by a taxable person acting in his own name, the chargeable event occurs and the tax becomes payable under the conditions applicable to the underlying transaction pursuant to the provisions of Article 269 of the CGI .

Thus, when the voucher entitles the holder to a delivery of goods, payment becomes due at each transfer by the combined application of a of 1 of article 269 of the CGI and of 1 of article 256 ter of the CGI. When the issuer is separate from the supplier who makes the delivery of goods, the handing over of the voucher by the supplier to the issuer with a view to payment for the delivery of goods carried out for the benefit of the user of the voucher constitutes a transfer of the voucher. 

On the other hand, in accordance with c of 2 of article 269 of the CGI, if the voucher gives access to a provision of services, the payment will occur when the installments, the price, the remuneration are collected by the issuer, the distributor or the service provider when it is separate from the issuer or, at the option of the liable party pursuant to c of 2 of article 269 of the CGI, according to the debits.

The rate of VAT applicable in connection with each transfer of a single-use voucher is the rate applicable to the provision of services or the supply of goods to which the voucher relates.

The tax base for the delivery of goods or the provision of services carried out in exchange for a single-use voucher is determined in accordance with 1 of article 266 of the CGI .

B. Multi-Purpose Vouchers

1. Principle

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Pursuant to 2 of article 256 ter of the CGI , transfers of multi-purpose vouchers prior to their use are not subject to VAT. It is at the time of the material delivery of the goods or the performance of the service that the taxation intervenes, all the elements likely to allow the liquidation of the VAT then being known ( BOI-TVA-CHAMP-10-10-40 -50 ).

For the sale of goods, the tax is due on the date of acceptance of the vouchers by the suppliers since it can be considered that the delivery of these goods has been made at the moment when the vouchers are taken back in exchange. by points of sale.

With regard to the provision of services, payment will occur upon receipt of the price of the transaction within the meaning of c of 2 of article 269 of the CGI , i.e. at the time of receipt. the refund made by the issuing company, or the return of the voucher when the service provider has also issued the voucher.

Pursuant to a bis of 1 of Article 266 of the CGI , the tax base for the delivery of goods or the provision of services carried out in connection with a multi-purpose voucher is equal to the consideration paid in exchange for the voucher. or, in the absence of information on this counterpart, at the monetary value indicated on the multipurpose voucher or in the corresponding documentation, reduced by the amount of the value added tax relating to the goods delivered or the services provided.

This consideration will correspond to the sums received when the multipurpose voucher is issued when there is identity between the issuer and the supplier or service provider.

The sums constituting the remuneration for the provision of services by the issuing company and deducted by this company from the reimbursement to which the vouchers give right cannot be reduced from the tax base of the service providers or suppliers who have accepted the vouchers. On the other hand, the service providers or suppliers may deduct the VAT on the management fees invoiced by the issuing company under the conditions of common law.

2. Application of the VAT rules on multipurpose vouchers to the marketing of gift boxes

has. Operation of gift boxes constituting multi-purpose vouchers

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The boxes each contain a gift voucher without face value for a limited period which can be used by their beneficiaries to acquire, for example, a certain number of goods and services in the cultural field from a defined list (books or compact discs , concerts, visits to museums or exhibitions). The reservation formalities are completed by the beneficiaries themselves directly with the service providers.

These gift boxes are marketed directly by the issuing company or through distributors.

The gift vouchers, after having been delivered by the beneficiaries to the service providers, are then sent by these service providers to the issuing company which reimburses them up to a price contractually agreed with them, less a remuneration corresponding to the management fees.

Insofar as the VAT due on the services that the beneficiary of the gift vouchers will subsequently choose is not known precisely when these boxes are issued (territoriality of the delivery of goods or the provision of services, base, rates), this type of themed box sets are multipurpose vouchers.

b. Rules applicable at the level of the issuing company

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In the absence of a direct link between the supply of an individualized good or service and a consideration received, the sums paid by the purchasers of gift boxes fall outside the scope of VAT. The documents that may be issued on the occasion of the delivery of the gift boxes must not include any invoiced VAT.

Similarly, the sums retained by the issuing company for expired or unused checks do not constitute taxable turnover.

On the other hand, the management fees which are deducted by the issuing company from the amount of the gift vouchers reimbursed to the service providers must be subject to VAT at the normal rate, since they constitute consideration for a service rendered to these suppliers (commissions remunerating these management costs must give rise to the issuance of invoices pursuant to the provisions of Article 289 of the CGI , Article 242h of Annex II to the CGI and Article 242h A of Annex II to the CGI ).

In return for the taxation of its commissions, the issuing company may deduct the VAT charged on the expenses incurred to carry out its services for the benefit of the distributors and in particular the costs of manufacturing the boxes or printing the gift vouchers.

vs. Rules applicable at the level of service providers or suppliers

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Pursuant to 2 of article 256 ter of the CGI, the material delivery of goods or the actual provision of services in exchange for a multi-purpose voucher accepted in full or partial consideration by the supplier or service provider is subject to the tax .

In respect of retail sales of goods, the tax is payable on the date the vouchers are taken back by the merchants since it can be considered that the delivery of these goods is made at the moment when the vouchers are taken back in exchange. by points of sale. In this regard, the fact that the issuer is also the supplier or separate from the latter is irrelevant.

With regard to the provision of services, payment will occur upon receipt of the price of the transaction within the meaning of c of 2 of article 269 of the CGI, i.e. at the time of receipt. the refund made by the issuing company, or the return of the voucher when the service provider has also issued the voucher.

The sums constituting the remuneration for the service provided by the issuing company and deducted by this company from the reimbursement to which the vouchers give entitlement cannot be reduced from the tax base of the service providers or suppliers who have accepted the vouchers.

On the other hand, the service providers or suppliers may deduct the VAT on the management fees invoiced by the issuing company under the conditions of common law.

d. Rules applicable, where applicable, at distributor level

297

These can be retail stores or websites.

The distributors who market the boxes in their own name and on behalf of the issuer buy the boxes, become their owners and bear the risk of poor sales. In this situation, and for the same reasons as those set out above (IX-B-2-2), sales of gift boxes made by distributors must be considered to be outside the scope of VAT.

On the other hand, these distributors must, when they buy back the gift boxes from the issuing company, subject to VAT the supply of distribution services that they provide to the issuer and whose value corresponds to the difference between the purchase price and the resale price of the box agreed between the parties. Correlatively, the issuing company may deduct this tax under the conditions of common law.

Distributors who market the boxes in the name and on behalf of the issuing company submit their distribution service to VAT under the conditions of common law.

X. Transactions in the context of electronic commerce

300

Certain deliveries of goods made in the context of e-commerce are subject to specific rules for determining the chargeable event and for the payment of the tax:

  • in the event of application of the purchase-resale scheme provided for in 2° of V of Article 256 of the CGI for taxable persons who facilitate deliveries by means of electronic interfaces, delivery by the seller to the taxable person facilitating and that by the taxable facilitator to the end consumer (for the conditions of application of this scheme and the operations concerned, please refer to II § 90 et seq. of BOI-TVA-CHAMP-10-10-40-60 );
  • in the event of recourse to the so-called “Import One Stop Shop” (“IOSS”) counter provided for in article 298 sexdecies H of the CGI , for distance sales of goods imported from third territories or third countries declared in this counter (for conditions for using this regime and the transactions concerned. For more details, please refer to BOI-TVA-DECLA-20-20-60-20 ).

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For these deliveries, the chargeable event for the tax and the liability occur when payment by the end customer has been accepted ( CGI, art. 269.1-a sexies and 2-b ; CGI, art. 298 sexdecies H, ID).

This moment means the moment when the payment confirmation, the payment authorization message or a payment commitment from the acquirer is received, regardless of when the amount is actually paid, whichever comes first ( Council Implementing Regulation (EU) 2019/2026 of 21 November 2019 amending Implementing Regulation (EU) No 282/2011 as regards the supply of goods or the provision of services facilitated by electronic interfaces and special regimes applicable to taxable persons who provide services to non-taxable persons and carry out distance sales of goods and certain domestic deliveries of goods, Articles 41 bis and Article 61 ter ).

Source: gouv.fr

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