TVA rate from the customer鈥檚 country applicable to AE in France
Dear Valerie,
As per new regulations in 2018, I have to obtain my TVA number/invoice my customers adding TVA, once my turnover reaches 35K (under AE status). My 2 clients are outside France (I provide scientific/medical writing services remotely for them).
I came across your recent communication below:
鈥淭his article from AFE is quite good to summarise the different options. If you are supplying services B2B to a customer based abroad, but you are based in France, the TVA rate applicable is from the customer鈥檚 country. You will invoice without tax 鈥淗ors-tax鈥� and you would have to made a monthly declaration to Impot called Declaration Europeenne des Services (DES) with ProDouanes. Read the section about 鈥� Obligations declaratives/ Le prestataire est 茅tabli en France鈥�. In that respect, the application of TVA for your AE is not an issue compared to other AE, for whom it means an extra 20% taxes. You would have to make a declaration for all your customers, since you would officially become TVA registered, which normally means invoicing all your customers鈥�
It seems situation described above by you applies to me as well. However, I am not sure I understand all details.
For example,
- my invoice for services to Canadian client in Quebec constitutes 2K ;
Most goods and services in Quebec are subject to two taxes, a federal Goods and Services Tax of 5% (usually listed as TPS on receipts 鈥� Taxe sur les produits et services) and a provincial sales tax of 9.975% (TVQ on receipts 鈥� Taxe de vente du Qu茅bec).
Should I include 14,975% in my invoice 鈥� 2K plus TVA 299,5 = 2 299,5
it is not clear for me what you mean:
鈥淵ou will invoice without tax 鈥淗ors-tax鈥� and you would have to made a monthly declaration to Impot called Declaration Europeenne des Services (DES) with ProDouanes鈥�. the application of TVA for your AE is not an issue compared to other AE, for whom it means an extra 20% taxes鈥�.
Thank you in advance,