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Serious Steps for Following the Taxes

The choice of the VAT regime in the context of the creation of your activity should not be taken lightly.It has a significant impact on the company's cash flow. Depending on the option chosen, a declaration that causes an outflow (VAT payable) or an entry (VAT credit to be refunded) of cash must be produced at a certain frequency.

The impact of the choice of VAT regime can be analyzed when making your forecast, on the part devoted to the cash flow plan.

Choosing the right VAT regime is a problem that must be discussed with the accountant, like all the other choices linked to the creation of a business (legal status, taxation, etc.). It is therefore important to find your accountant before setting up the business in order to be advised on these choices. Using the c corp tax calculator is essential in this case.

Tips for choosing the right VAT regime

Depending on the characteristics of your project, it will be more appropriate to move towards a VAT regime. However, it is still necessary that the size of your company leaves you the choice at this level.

We are going to present four cases that we come across frequently and give you our advice on the opportune choice to make with regard to VAT.

Small B to C activity and low costs with VAT

It often happens that certain entrepreneurs create an activity within the framework of which they will mainly address themselves to individuals and will have very little cost to bear.

If the activity is reduced, the VAT exemption regime is a real opportunity in this case:

·         The private customer, who does not recover the VAT, resonates only in TTC and you will be able to be more competitive than the companies subject to the VAT,

·         You will not have to make any VAT declaration.

Activity that generates VAT credits

Given the tax rules that govern them, certain activities frequently place the company in a situation of VAT credit.

This is for example the case:


In certain building sectors where materials are purchased at the standard rate of VAT and customers invoiced at the reduced rate of VAT,or for companies which buy their goods in France and which have a large part of their activity carried out for export.

Activity that generates VAT payable

Many companies also have an activity which causes an excess of collected VAT to be returned to the State. The company therefore has a cash outflow to predict when filing the VAT return.When the size of the company and the amount of VAT to be paid allow it, it may be appropriate to opt for the real simplified VAT regime or the real normal (or mini-real) regime with filing of a quarterly declaration. .

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