VAT on international transactions
What is VAT on international transactions?
Who is affected by VAT on international transactions?
Can VAT on international transactions be optimized?
Why hire a tax lawyer specializing in international VAT?
What is VAT on international transactions?
VAT on international transactions is the Value Added Tax potentially applicable to international operations conducted by businesses. The standard VAT rate in France is 20%. The applicable international VAT regime may vary depending on the type and nature of the international operations: import or export, acquisition or delivery, to a third-country or to a European Union country. In this regard, some transactions will be invoiced without taxes, while others will need to include VAT.
Who is affected by VAT on international transactions?
International VAT applies to all businesses conducting international operations. Whether the company engages in buying/selling operations or provides services, it must consider the VAT territoriality rules that vary depending on the actors involved in the operation (B to B or B to C). The company must pay particular attention to the application of the VAT regime, as it can directly impact its margin, especially in B to C commercial relationships.
Can we optimize VAT on our international operations?
International VAT requires special attention to avoid becoming an unjustified burden for the company. Therefore, when conducting international operations, it is crucial to anticipate the tax consequences regarding VAT to make the right tax choices. Anticipating the tax implications of operations can help the company optimize its taxation.
Why call on a tax lawyer specializing in international VAT?
VAT applicable to international operations is highly complex. Errors in international VAT matters (especially regarding rates and territoriality) lead to numerous tax audits and can have significant financial consequences for businesses.
The tax lawyers at LEXPERTAX provide assistance to businesses in auditing, ensuring compliance, and optimizing the VAT regime for international operations. We advise you on the best strategies for international VAT to optimize the taxation of your operations.
Why call on a tax lawyer specializing in international VAT?
The activity of real estate development involves producing real estate properties intended for sale. Real estate development mainly entails the construction and sale of real estate properties. Therefore, the construction and sale of real estate properties fall under the rules governing the Value Added Tax (VAT), known as real estate VAT…
VAT Goods dealer
The activity of a real estate dealer involves purchasing real estate properties, either in one’s name or through a company, and reselling them to make a profit.
To enhance profit margins, a real estate dealer may employ various strategies, such as purchasing a building followed by dividing it into lots and reselling the lots separately, or renovating real estate properties to increase their value before selling…
VAT Construction-sale
The VAT on construction-sale is the value-added tax applicable to the construction of real estate properties for resale. The VAT rate applicable to this type of real estate transaction is normally the standard rate. However, it may vary depending on different parameters, such as the type of transaction and the profiles of the buyers…
VAT on business, professional and commercial real estate
Real estate held for professional purposes by a company, whether it is a civil or commercial activity, may be subject to real estate VAT.
Indeed, whether it is professional real estate purchase or sale, intended for the use of the company or for rent, the company must pay particular attention to the application of the VAT regime.
Thus, certain real estate transactions may fall within the scope of VAT, while others may be outside the scope or exempt from VAT, sometimes with possible option mechanisms.
Real estate VAT and complex transactions
Certain real estate transactions carried out by professionals, such as the restoration of historical monuments or classified buildings, can undergo a complex tax regime at the time of resale due to an interweaving of various tax regimes that may apply. The real estate VAT applicable to this type of real estate transaction can then appear complex to determine. The tax complexity inherent in certain real estate transactions can arise from the fact that the company will sometimes have to take into account several real estate VAT regimes (VAT on new construction, VAT on buildings over 5 years old, different VAT rates…) by ventilating its real estate transaction accordingly…