VAT exempt - Can I avail of 'how to avoid paying VAT' for ProZ membership? Thread poster: Hilary McGrath
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Hello,
I have set up as a micro entrepreneur in France (VAT exempt). As far as I understand, I should request my VAT number to quote on invoices, which I have done.
I intend upgrading my ProZ membership, and when I do there is a box for EU Residents only 'How to avoid paying VAT' which states, 'Even if you have a VAT number and do not pay VAT to ProZ.com, you might be responsible for accounting for VAT. In some countries, in this case the tax liabilities are reversed. Please c... See more Hello,
I have set up as a micro entrepreneur in France (VAT exempt). As far as I understand, I should request my VAT number to quote on invoices, which I have done.
I intend upgrading my ProZ membership, and when I do there is a box for EU Residents only 'How to avoid paying VAT' which states, 'Even if you have a VAT number and do not pay VAT to ProZ.com, you might be responsible for accounting for VAT. In some countries, in this case the tax liabilities are reversed. Please check with your local tax authorities.'
I am assuming that I should pay the VAT because of my set up. Could anyone confirm?
Thanks ▲ Collapse
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nordiste 
France
Local time: 09:31
English to French
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| yes, you have to pay VAT | Mar 27, 2018 |
As a micro-entrepreneur you must pay VAT when you buy and you cannot charge VAT when you invoice.
See the portal (in French) https://www.lautoentrepreneur.fr/questions_reponses.htm#Fiscalite4
"A ce titre vous n'avez pas à facturer de la TVA et donc vous ne pouvez pas la récupérer.
En outre, vous devez faire figurer sur vos factures la mention ... See more As a micro-entrepreneur you must pay VAT when you buy and you cannot charge VAT when you invoice.
See the portal (in French) https://www.lautoentrepreneur.fr/questions_reponses.htm#Fiscalite4
"A ce titre vous n'avez pas à facturer de la TVA et donc vous ne pouvez pas la récupérer.
En outre, vous devez faire figurer sur vos factures la mention « TVA non applicable, article 293 B du code général des impôts ». " ▲ Collapse
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Sheila Wilson
Spain
Local time: 08:31
Member (2007)
English
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| I'm not sure that 'exempt' is the right word | Mar 27, 2018 |
I think it's more that you aren't registered for VAT.
But you certainly don't add VAT to your invoices and, equally, you don't get away with not paying it on purchases. I think the reason you need to include your number on your B2B invoices is simply so that audits can be performed across the EU states and the VAT books can get balanced. Fortunately, I remember the French DES return as being a 2-minute job.
In the Canary Islands we profit from most EU benefits AND we a... See more I think it's more that you aren't registered for VAT.
But you certainly don't add VAT to your invoices and, equally, you don't get away with not paying it on purchases. I think the reason you need to include your number on your B2B invoices is simply so that audits can be performed across the EU states and the VAT books can get balanced. Fortunately, I remember the French DES return as being a 2-minute job.
In the Canary Islands we profit from most EU benefits AND we aren't part of the VAT system. Our IGIC on local purchases is only 7%. When we buy goods from mainland Spain or another EU member we can get the seller to remove the VAT. And as private individuals we only pay IGIC if the total price is EUR 150 or more. Win, win  . ▲ Collapse
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Hilary McGrath
France
Local time: 09:31
French to English
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TOPIC STARTER
Yes, I should have said I'm not registered for VAT, rather than being exempt.
Thanks nordiste and Sheila.
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| Once you have your VAT number, just fill it in on the Proz membership form | Mar 28, 2018 |
Just fill in your VAT number once you have it. You won't have to pay VAT.
Fyi, by paying you won't be 'upgrading' your Proz membership, you will become a Proz Member. The site no longer considers or refers to non-payers as members.
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Hilary McGrath
France
Local time: 09:31
French to English
+ ...
TOPIC STARTER | of course it depends on circumstances | Mar 28, 2018 |
It's clear I won't pay VAT if I tick the box, but my question was whether this is the right action based on my circumstances (micro entrepreneur, not registered for VAT). I think the answer is (see nordiste's comment) 'As a micro-entrepreneur you must pay VAT when you buy and you cannot charge VAT when you invoice.'
The orange button to click on in order to take Plus membership is still labelled 'Upgrade.'
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nordiste
France
Local time: 09:31
English to French
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| France VAT regulation for micro-entrepreneur | Mar 28, 2018 |
writeaway wrote:
Just fill in your VAT number once you have it. You won't have to pay VAT.
No.
Although it is technically possible - Proz does not care about French micro-entrepreneur status - in doing so you would not be compliant with the French tax regulation.
As Sheila said, in your case the VAT number is only used to audit cross-border business in the EU.
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Hilary McGrath
France
Local time: 09:31
French to English
+ ...
TOPIC STARTER | Signed up, paid up | Mar 29, 2018 |
Hi all,
I've replied twice already on this thread but my posts are awaiting approval (I don't know how long that takes, I guess it's because I'm a newbie).
Thanks for all replies. I've signed up and paid my VAT
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