TVA rate from the customer’s country applicable to AE in France

Vigipharma
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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:
“This 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’s country. You will invoice without tax “Hors-tax” and you would have to made a monthly declaration to Impot called Declaration Europeenne des Services (DES) with ProDouanes. Read the section about ” Obligations declaratives/ Le prestataire est établi en France”. 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”

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 – Taxe sur les produits et services) and a provincial sales tax of 9.975% (TVQ on receipts – Taxe de vente du Québec).

Should I include 14,975% in my invoice – 2K plus TVA 299,5 = 2 299,5
it is not clear for me what you mean:
“You will invoice without tax “Hors-tax” and you would have to made a monthly declaration to Impot called Declaration Europeenne des Services (DES) with ProDouanes…. the application of TVA for your AE is not an issue compared to other AE, for whom it means an extra 20% taxes”.
Thank you in advance,

 

Answered
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