Taxes, VAT and Social charges on Micro Enterprise and Sole Proprietor

Mrs P
· Viewed 171 times

My husband and I are non-EU citizens, planning a move to France.  We intend running the following business:

We will be leasing an old Chateau and will offer the following:

  • Renting out 2 gites
  • Operating a Chambre d’hotes and Table d’hote
  • Having events and other functions at the Chateau


My husband and I will operate this as our business and both of us will work in the business.

My questions are:

1.    Based on research we’ve done and the projections we made, is my interpretation of the various taxes and social charges for each of the types of businesses (i.e. micro enterprise vs sole proprietor) correct?  Does my list include all taxes and social charges and contributions that should be considered for operating a business under these regimes?

Micro Enterprise:

  • Social Security charges will be 12.8% of Total Revenue
  • Professional Training Contribution of 0.1% of Total Revenue
  • Chambre d’hotes contribution of 0.0015% of Total Revenue
  • Taxable Income calculated as Total Revenue less 71% expense allowance
  • Conjoint Collaborateur charge, calculated as 58% of Total Revenue x 12.8%
  • Tax calculated as Taxable Income divided by 2 (we are two in the household) – looking at the tax band – and then applying the tax formula being: (Net Taxable Income x %Tax based on tax Band) - (1 372,98 x Number of parts in household)


Sole Proprietor:

  • Social Security Contributions for both of us will be calculated as 45% of Net Profit (The social security contributions then become income tax deductible)
  • Taxable income then calculated as Net Profit less Social Security contributions
  • Tax calculated as Taxable Income divided by 2 (we are two in the household) – looking at the tax band – and then applying the tax formula being: (Net Taxable Income x %Tax based on tax Band) - (1 372,98 x Number of parts in household)


2.    Are these the best options for us to run the business (at least as a start in our first years)?

3.    Please explain the impact of VAT (TVA) – to me it seems as if we will be over the VAT limits and VAT would be payable, but I am unsure where/how to calculate it and where/how to deduct it.

Many thanks

Answered
Log in About membership