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VAT declaration and payment

Verified 01 juillet 2019 - Legal and Administrative Information Directorate (Prime Minister), Ministry of Finance

Sales and services are subject to the value added tax (VAT) collected by the trader who must pay it to the tax services. For taxable transactions, tax is calculated on the price excluding tax at different rates. The tax system (normal or simplified) depends on the amount of turnover achieved by the company and the amount of VAT due each year.

You report less than €15,000 in VAT per year

The simplified real-estate regime makes it possible to reduce the reporting and payment obligations of undertakings below the thresholds set. The declaration is annual and the payment is quarterly.

Companies not benefiting from the basic deductible VAT may be eligible for the simplified tax system (RSI) allowing them to reduce their reporting and payment obligations.

To qualify, companies must complete an annual CAHT that includes:

  • €33,200 and €238,000 for the provision of services and the liberal professions covered by the BNCs and BICs
  • €82,800 and €789,000 for business and accommodation activities (hotels, bed and breakfast, rural cottages, furnished with tourism in particular).

In addition, the annual amount of VAT payable must be less than € 15 000.

  FYI : This scheme is applicable to companies that meet the turnover conditions, regardless of their taxation system (corporate tax or income tax in the BIC or BNC category).

The report provides a summary of all the transactions taxable to VAT in the previous year and a basis for calculating the advance payments in the following year.

The simplified declaration shall be made on an annual basis, no later than the 2nd working day following May 1, using Form 3517-S-SD:

Annual VAT adjustment report - Simplified scheme

Cerfa n° 11417 - Ministry of Finance
Other number : 3517-S-SD

  Please note : If the fiscal year does not correspond to the calendar year, the return must be made within 3 months of its closure.

VAT must be paid by 2 half-yearly installments. They are calculated from the VAT due the previous year.

  • 55 % in July, to be indicated on line n° 57 (last page of form 3517-S-SD, heading "Basis for calculation of payments due in respect of the following financial year")
  • 40% in December.

Payment is made online on your tax account.

Online tax account for professionals (EFI mode)

Ministry of Finance

  FYI : If the VAT due in the previous year is less than € 1,000, the company is exempted from the payment of advance payments. VAT is paid for the whole year on the annual declaration.

Where turnover thresholds are exceeded, the simplified scheme shall be maintained during the year of exceedance if turnover does not exceed:

  • €269,000 for services
  • €869,000 for the delivery of goods, sale to be consumed on site and accommodation services.

If these amounts are exceeded, the simplified scheme shall cease immediately. The undertaking is considered to be covered by the normal VAT system from the 1st day of the current financial year.

The month following the month of the overrun, the company must file a declaration n°3310-CA3. It summarizes the operations carried out from the beginning of the financial year until the month of the overrun.

Value added tax (VAT) - Value added tax and related taxes - Actual normal-mini real regime

Cerfa n° 10963 - Ministry of Finance
Other number : 3310-CA3-SD

Example :

If a company selling goods has a turnover of €800,000 in 2020, it continues to fall under the simplified VAT system for 2020. But if it has a turnover of €870,000 in 2021, it will no longer be able to fall under this system.

You declare more than 15 000 € of VAT per year

The real normal system allows companies that are above the thresholds to declare and pay their VAT. Reporting and payment are monthly.

The normal real system shall apply to undertakings liable for VAT whose turnover excluding tax is greater than:

  • €238,000 for services
  • € 789,000 for business activities and housing supply.

This scheme also applies to companies which report more than € 15 000 in VAT per year. This is true even if their HTA is within the thresholds of the simplified tax system.

Undertakings subject to the normal real system must declare each month the VAT which became due in the preceding month. Payment is made online:

Online tax account for professionals (EFI mode)

Ministry of Finance

  FYI : If the VAT paid each year is less than € 4,000, it is possible to declare and pay quarterly.