My wife and I have recently relocated to France, purchased a house and registered individually as Micro-Entrepreneurs (Auto Entr. I believe is the same thing?). Here is a high level overview:
1. I am a digital marketer and my wife a graphic designer (separate registrations/SIRET numbers)
2. Currently we should (individually) fall under the €35K VAT threshold - thus not having to charge VAT.
3. Our clients are split 20% UK, 40% US, 40% AU
4. The businesses have low overheads (less than 30% of T/O)
Here’s where the questions start:
1. As our clients have grown from our UK base, we are using GDP invoicing and accounting software, and hand not planned on moving this over to Euro based accounting (and platform). Will GDP based invoicing be accepted? All Dollar based payments are processed through our UK bank accounts currently, and then transferred over monthly to our designated Auto-Ent business account with CA.
1. Once we earn over the €35K do we have to charge VAT to US and AU clients?
2. Once the UK exits the EU would they be exempt from being charged VAT? And would that be from 31st January 2020?
1. Do I understand it correctly that the tax rate for Auto-Ent is 22% on all sales?
2. Are there any other taxes I am not “seeing” - for example we are charged 22% on all sales, less a “given deduction amount for assumed expenses” (not sure what this is yet), we then pay ourselves the remaining as “salaries” ...... are we then taxed on our “salaries” or is this seen as the same thing (i.e are there more taxes applicable?)
3. Could you illustrate based on a €33K turnover what our tax deduction would be?
1. We anticipate much growth over the coming year AND are launching a web based application (app)
2. Once we individually surpass the €35K VAT threshold would it be better to restructure the Auto.Ent into a company structure (small business structure) and pay ourselves dividends? For example let’s say we individually grew our businesses to €60K annually (each). Or a better way to phrase the question possibly - When would it be best to consider a larger business structure?