{"id":17557,"date":"2023-03-07T17:10:30","date_gmt":"2023-03-07T16:10:30","guid":{"rendered":"https:\/\/www.easytax-international.com\/?p=17557"},"modified":"2023-03-30T16:49:31","modified_gmt":"2023-03-30T14:49:31","slug":"charters-french-vat","status":"publish","type":"post","link":"https:\/\/www.easytax-international.com\/en\/blog\/news\/charters-french-vat\/","title":{"rendered":"VAT exemption on French charters for companies VAT registered in France"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"17557\" class=\"elementor elementor-17557\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-section elementor-top-section elementor-element elementor-element-57b6118 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"57b6118\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d9fdd50\" data-id=\"d9fdd50\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4a837aa elementor-widget elementor-widget-text-editor\" data-id=\"4a837aa\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 23-07-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<h2>The reverse charge mechanism on charters<\/h2>\n<p>Referring to the following article:<\/p><blockquote>\n<\/blockquote>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" data-dce-background-color=\"#FFFFFF\" class=\"elementor-section elementor-top-section elementor-element elementor-element-db47293 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"db47293\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-05f06e8\" data-id=\"05f06e8\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-471a78a ezy-captain-note elementor-widget elementor-widget-text-editor\" data-id=\"471a78a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Article 194 of the Directive 2006\/112\/EC<\/strong><\/p><ol><li>When taxable delivery of goods or provision of service is made by a taxable person who is not established in the Member State in which the VAT is due, Member States may provide that the person liable for the tax is the recipient of the delivery of goods or the provision of services.<\/li><li>Member States shall determine the conditions of application of paragraph 1.<\/li><\/ol>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-section elementor-top-section elementor-element elementor-element-1f7d490 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1f7d490\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4850fba\" data-id=\"4850fba\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d7553e8 elementor-widget elementor-widget-text-editor\" data-id=\"d7553e8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ), Sans-serif; font-size: var( --e-global-typography-text-font-size ); font-weight: var( --e-global-typography-text-font-weight );\">France has opted <\/span><strong style=\"color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ), Sans-serif; font-size: var( --e-global-typography-text-font-size );\">to apply the principle of the reverse charge mechanism<\/strong><span style=\"color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ), Sans-serif; font-size: var( --e-global-typography-text-font-size ); font-weight: var( --e-global-typography-text-font-weight );\"> when a foreign company, who is not established in France, <\/span><span style=\"color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ), Sans-serif; font-size: var( --e-global-typography-text-font-size ); font-weight: var( --e-global-typography-text-font-weight );\"><b>carries out taxable operations in France<\/b><\/span><span style=\"color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ), Sans-serif; font-size: var( --e-global-typography-text-font-size ); font-weight: var( --e-global-typography-text-font-weight );\"> (<\/span><em style=\"color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ), Sans-serif; font-size: var( --e-global-typography-text-font-size ); font-weight: var( --e-global-typography-text-font-weight );\">Article 283-1 of the French Tax Code<\/em><span style=\"color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ), Sans-serif; font-size: var( --e-global-typography-text-font-size ); font-weight: var( --e-global-typography-text-font-weight );\">).<\/span><\/p><blockquote><p>In this case, the VAT is payable by the charterer who is identified for VAT purposes in France.<\/p><\/blockquote><p>Taking into account that:<\/p><ul><li>The owning company is not established in France,<\/li><li>The charterer is VAT-registered in France,<\/li><li>The charter departs from France.<\/li><\/ul><p>\u00a0<\/p><p>In this case, the charter contract must be drafted excluding VAT.<\/p><p>Remember that, in order to ensure full compliance, the correct wording must appear on the contract:<\/p><blockquote><p><i>&#8220;Reverse charge by the lessee, Article 283-1 of the French Tax Code.\u201d<\/i><\/p><\/blockquote>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" data-dce-background-color=\"#FFFFFF\" class=\"elementor-section elementor-top-section elementor-element elementor-element-6454f1e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6454f1e\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ef0d7a4\" data-id=\"ef0d7a4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-78c45d1 ezy-captain-note elementor-widget elementor-widget-text-editor\" data-id=\"78c45d1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong><span style=\"color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ), Sans-serif; font-size: var( --e-global-typography-text-font-size );\">Be careful:<\/span><\/strong><span style=\"color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ), Sans-serif; font-size: var( --e-global-typography-text-font-size );\"><b> if a charter contract is incorrectly drafted (with VAT), it will be mandatory to proceed with the amendments and the reimbursement of the VAT amount paid by the charterer.\u00a0<\/b><\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>In some specific cases, charter contracts must be drafted without VAT due to the reverse charge mechanism applicable in France. Find out all the information you need to know to be compliant with the French regulations.<\/p>\n","protected":false},"author":5,"featured_media":17559,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[36],"tags":[],"class_list":["post-17557","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-vat-yachting-news"],"_links":{"self":[{"href":"https:\/\/www.easytax-international.com\/en\/wp-json\/wp\/v2\/posts\/17557"}],"collection":[{"href":"https:\/\/www.easytax-international.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.easytax-international.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.easytax-international.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.easytax-international.com\/en\/wp-json\/wp\/v2\/comments?post=17557"}],"version-history":[{"count":25,"href":"https:\/\/www.easytax-international.com\/en\/wp-json\/wp\/v2\/posts\/17557\/revisions"}],"predecessor-version":[{"id":18436,"href":"https:\/\/www.easytax-international.com\/en\/wp-json\/wp\/v2\/posts\/17557\/revisions\/18436"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.easytax-international.com\/en\/wp-json\/wp\/v2\/media\/17559"}],"wp:attachment":[{"href":"https:\/\/www.easytax-international.com\/en\/wp-json\/wp\/v2\/media?parent=17557"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.easytax-international.com\/en\/wp-json\/wp\/v2\/categories?post=17557"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.easytax-international.com\/en\/wp-json\/wp\/v2\/tags?post=17557"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}