Finance

Sales Tax and the Perfect Choices

 

The deputy specifies that the sales platforms will have to transmit to tax bodies the amount of sales made by third parties through their platforms. This would make it possible to precisely calculate the amount owed by the platform, under its legal solidarity, in the event of non-payment of the amount of Sales tax by the merchant.

The choice of micro-enterprise for simplified taxation

Faced with the social and fiscal difficulties encountered by companies, the choice of micro-enterprise is more and more chosen among e-commerce professionals. Zoom on this status and its advantages, which facilitate the daily life of e-merchants, while not exempting them from their obligations. Use the sales tax calculator by zip code  is important.

E-commerce-tax-obligations

Monthly or quarterly declarations?

When setting up a business and when applying for registration, the micro-entrepreneur makes two choices which have considerable importance in managing his cash flow:

  • On the one hand, the choice between a monthly or quarterly declaration of its turnover to URSSAF, which will be used to calculate the amount of its social charges;
  • On the other hand, the choice between a monthly or quarterly Sales tax declaration, which will be used for the calculation of the value added tax.
  • Regarding the declaration of turnover to the URSSAF services, the monthly or quarterly declaration has little importance for the micro-entrepreneur. In reality, if he opts for the quarterly declaration, it will simply be necessary to keep sufficient liquidity in his bank account to be able to make the payment on time.

The Sales tax declaration, on the other hand, can have a direct influence on the cash flow of the micro-entrepreneur. Indeed, when the purchase of goods is large, and the cash available in the bank account is low, it can be useful to obtain a refund of Sales tax as quickly as possible. In that case, opting for a monthly statement can be a great choice.

As a reminder, the micro-entrepreneur benefits from the exemption on the basis of Sales tax. He does not apply Sales tax if his turnover is less than € 85,800 (traders) and € 34,400 (craftsmen and liberal professions). The tolerance thresholds (additional margin before the actual switch to the traditional Sales tax regime) are set at 94,300 for the former and € 36,500 for the latter.

Taxable persons can waive the deductible, in particular for an investment (the price of which is encumbered by a significant amount of Sales tax) or to allow their customers (subject to Sales tax) to recover the tax on their purchases. But in this case, return to the real regime of taxation of profits and heavy fiscal and accounting obligations.

Annual income tax return

Moreover, as an e-commerce actor, the micro-entrepreneur carries out an activity of selling goods. The turnover achieved must be declared in the category of professional industrial and commercial income (micro-BIC), and may be subject to the monthly withholding tax.

What about social contributions?

Social contributions will be paid monthly or quarterly to URSSAF. As a general rule, the contribution must be released before the 25th of the month following the declaration of turnover, otherwise penalties may apply to the detriment of the micro-entrepreneur. As a general rule, it is advisable to adopt a monthly frequency and to make the declaration of turnover at the same time as the Sales tax declaration.

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