allow the company to deduct the value of the VAT it has paid on its professional expenses.

[tanjimajuha20]

Which operations are exempt from VAT?
While the application of value added tax is the norm in France, certain operations, by exception, are exempt from it. The company therefore does not invoice it, and consequently cannot recover it.

This is the case for medical and paramedical activities. Services and care provided by doctors, both general practitioners and specialists, but also nurses and other medical personnel are not subject to the application of this tax. The field of education is also spared from VAT. Schools, universities or georgia phone data even professional diploma courses do not apply it to their rates, except for rare specific training courses. Certain real estate transactions are also exempt from VAT, such as the rental of unfurnished premises for residential use, or under certain conditions for professional use. Finally, banking transactions, insurance as well as cultural, associative and social activities are also generally exempt from VAT.

Transactions with deductible VAT
Other operations, if not exempt,

Raw materials and operating goods
This concerns goods used as raw materials or services which the company uses for its operations, such as consultancy firms, advertising, etc.

Overhead costs
Many general expenses can also be deducted, including the purchase of office equipment , and all costs relating to the operation of the company: electricity, water, telephone, internet, etc.

Company vehicles or vehicles intended for resale
Naturally, this deduction also applies to investments that the company decides to make to ensure its proper functioning, such as the purchase of vehicles, as long as they are for professional use. Passenger vehicles (non-utility type) are generally not deductible, but they can be if their use is part of the company's operation, for example in the case of a driving school , a rental company, or simply a car garage.

Business accommodation or travel expenses
Finally, let us mention the costs of transport, travel, meals and accommodation in a professional context, if they are necessary for the proper functioning of the company.

VAT regimes according to your company's activity
Depending on the legal status of your company, you will therefore have to join one of these tax regimes. Some are mandatory, but you can always subscribe to a higher, more restrictive regime, for the sake of transparency or if it is to your advantage.

VAT exemption
This is the perfect scheme for companies with a turnover below 77,700 euros (services) or 188,700 euros (sale of goods). The company does not collect VAT and therefore invoices customers excluding tax (HT) . This is the case for micro-enterprises and many self-employed entrepreneurs.

Simplified Real VAT Regime
If your turnover is above this threshold, you automatically enter this system. VAT is collected from customers (including tax) and paid to the State by means of a CA12 declaration, twice a year. Management is relatively simple and allows you to deduct VAT on professional purchases.

Normal Real VAT Regime
This VAT regime is mandatory above the last turnover threshold. But it can also be chosen deliberately. The VAT will then be collected and declared monthly (unless it is less than 4,000 euros, in which case a quarterly declaration is sufficient).

Specific Diet
To support businesses and not penalize them, the government allows certain sectors to benefit from special VAT regimes . Such as the agricultural regime , VAT on margin for real estate agents, or the self-liquidation regime for companies with foreign service providers.