July 24, 2021

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Put VAT on receipts

The company that does the real estate work or provides the service pays value-added tax on its collection, but not on the invoices it attracts. This particular diet should be counted differently for better monitoring.

The date on which VAT is payable is the price collection or various underpayments or deposits, excluding the subject of the debit option.

Accounts for VAT on receipts should use additional accounts to ensure dual control and can systematically verify that CA3 notification corresponds to receipts and payments. If an invoice is not paid, the amounts will not be declared and will be in the accounts.

This additional account is not always used by small businesses. Trivial transactions are monitored using the letter of accounts 44. Then VAT framing helps to check the completeness of monthly CA3 or annual CA12 notices.

How to calculate VAT on receipts?

Value added tax is calculated on the basis of the sum inclusive of all taxes. For a rate of 20%, it is sufficient to divide the amount paid by 1.20 before multiplying by 0.20.

Accounting for VAT on collection

Any fees paid by a customer before and after the invoice must be declared in this case. Conversely, VAT will not be deducted on purchases until the invoice is paid.

VAT collected on account 44574 receipts and account 44564 VAT deductible on receipts can be used till payment or for lower charges. These accounts show the tax outstanding notice.

6226

Law firm fees 3000

44564

Law firm fee 600

401 Cap

Law firm fees

3600

Special accounts deducting VAT on receipts will be settled at the time of payment of the VAT amount associated with this fee.

If the deposit or payment is made before the invoice is posted, the entry will be the same.

At the time of VAT announcement, it is sufficient to take the balance of 445717 account to know the amount of VAT collected at 20% to declare.

The balance of account 44574 will show the VAT not yet paid, which the customer has not received.

Continuation of the previous example

The company pays its attorney, the accounting entries are as follows:

401 Cap

Attorney Fees

3600

512

Attorney Fees

3600

44566

Regulation following payment

600

44564

Regulation following payment

600

At the end of this process, account 44564 is closed (zero).

VAT and service delivery: Exclusions

It arises from the difference between the fact that value added tax is generated on receipts and the amount of value added tax collected. It refers to companies that are or are subject to VAT established in France and do not choose VAT on debits. We are talking about the person responsible for VAT.

Date of payment The date of payment of tax by the public treasury.

The compatibility rate (fixed rate or reduced rate) has no effect. It is necessary to create accounts for each rate used so as not to make a mistake.

The provision of services is defined by default as all functions for which goods are not provided.

The General Tax Code also integrates them:

  • Allocation or concession of intangible movable property;
  • The compulsion not to commit or tolerate an act or circumstance (non-competitive division, passive slavery);
  • fawn works;
  • Real estate work;
  • Performance of the duties of a trustee;
  • Currencies, currencies, stocks and transactions in company stocks.

Once the service provided by a French company is concerned about a customer located in France, the region has no problem in providing the services.. In the absence of extranite, French vat will apply.

Let us simply recall that if services are provided among taxable persons within the EU, with certain exceptions, the tax must be paid by the recipient of the service.

These are tax-free transactions for the service provider filing an invoice without VAT and a European service notice.

Services and VAT Issuance: VAT Framing in Collection

When the accounting is well thought out, VAT control can be done from the tax package or the rest. This function allows the accountant to check whether all VAT has been declared and paid.

The business that pays its taxes on the basis of receipts benefits by using different accounts for normal rate, reduced rate and intermediate rate..

This is valid for accounts receivable and product accounts and value added tax accounts.

Calculate or verify a socio-community VAT number: