Choosing your tax regime
Choosing the right profit tax and VAT regime is crucial for the company's tax management. It is strongly recommended that you consult a chartered accountant to confirm the tax regime.
Profit taxation
As a rule: all commercial companies (SAS or SARL) opt for corporation tax (impôt sur les sociétés).
By exception: the SAS may opt for income tax (impôt sur les revenus). This option requires the agreement of all shareholders and is available under certain conditions.
VAT
Simplified real regime
The company files an annual VAT return and makes payments by half-yearly instalments.
Conditions: applies provided that annual turnover excluding VAT does not exceed:
€840,000 for sales and accommodation services;
€254,000 for service activities.
It is also possible to opt for this regime if the VAT due is less than €15,000.
!! If turnover thresholds are exceeded, the regime automatically switches to the normal real regime.
Normal real regime
The company files a VAT return every month. Payment must be made monthly.
Conditions: if the turnover thresholds for the simplified real regime are exceeded, the normal real regime applies.
It is possible to opt for quarterly payment if the annual amount of VAT does not exceed €4,000.
VAT exemption (uncommon for SAS)
The SAS may opt for the franchise en base de TVA to avoid being subject to VAT. The VAT exemption means no VAT return is required and no VAT is charged to customers. In return, it is not possible to deduct VAT paid on purchases.
!! Mini-réel option: allows you to opt for simplified corporation tax and the normal real VAT regime (useful when there is a lot of VAT to pay)
