The tax rules that apply to VSEs / SMEs
Are you a business owner facing complex tax issues? Accounting and tax management can quickly become a real headache.
As accountants, we're here to help you avoid mistakes and focus on growing your business. So, ready to sift through the tax rules for VSEs and SMEs?
The tax rules that apply to small businesses can be difficult to understand and put into practice. However, the correct management of accounting and taxes is essential to ensure the sustainability and development of a business.
In this article, we will review the main tax rules that apply to VSEs and SMEs, as well as the tax obligations to be respected. We will also see how an accountant can help small businesses manage their accounting and optimize their taxation.
Taxes that apply to small businesses
Accounting and tax management is one of the most important challenges for small businesses (VSEs and SMEs). This is due to the fact that tax rules can be complex and mistakes in accounting can lead to financial penalties. This is why it is crucial to understand the different types of taxes that apply to businesses.
1. Corporation tax (IS)
The first type of tax to which companies are subject is corporation tax (IS). IS is a corporate profit tax, with a tax rate of 28% for profits above €500 and 000% for profits below this threshold in 15. sole proprietorships, one-person limited liability companies (EURL) and limited liability companies (SARL) can benefit from a simplified tax regime, income tax (IR).
2. Value Added Tax (VAT)
Then, companies are also subject to value added tax (VAT). VAT is a tax on consumption which is invoiced to customers by companies and transferred to the State. Small businesses can benefit from a simplified VAT regime, the micro-enterprise regime, if their annual turnover does not exceed €176 for the activities of sale of goods or provision of housing or €200 for other activites. In this case, they can apply a reduced VAT rate of 72%, 600% or 2,1% depending on their activity.
3. The territorial economic contribution (CET)
Finally, companies must also pay the territorial economic contribution (CET). The CET is a local tax which is made up of two taxes: the business property contribution (CFE) and the business value added contribution (CVAE). The CFE is based on the rental value of the real estate used by the company, while the CVAE is based on the added value produced by the company. Companies can benefit from a total or partial exemption from the CFE depending on their situation.
Small Business Tax Obligations
Businesses must meet several tax obligations to remain compliant with tax rules. Among the main tax obligations are:
- Keeping regular accounts: Companies must keep regular accounts in order to be able to produce tax declarations and financial statements. Keeping accounts is also important for monitoring business activity and for decision-making.
- Production of tax returns: Companies must file different tax declarations, such as the declaration of results, the VAT declaration and the CFE/CVAE declaration, depending on their tax situation. These declarations must be filed on time to avoid penalties.
- Payment of taxes: Businesses must also pay taxes on time to avoid late penalties. Taxes must be paid regularly throughout the year, in particular installments of IS, VAT and CFE/CVAE.
- Retention of accounting documents: Companies must keep the accounting documents for a period of 10 years, in order to be able to respond to any requests from the tax authorities.
It is important to note that tax obligations may vary depending on the size of the company, its tax regime and its sector of activity. It is therefore recommended to be accompanied by a chartered accountant to be sure to comply with all tax obligations.
How an accountant can help small businesses
Small businesses can benefit from the expertise of an accountant to help them manage their accounts and their tax obligations. Here are some examples of the services that an accountant can offer:
- Bookkeeping: A chartered accountant can take care of the bookkeeping of the company, producing financial statements and tax returns.
- Payroll management: A chartered accountant can also take care of the management of the company's payroll, by producing pay slips and social declarations.
- Tax optimization: A chartered accountant can advise the company on the various tax optimization strategies, by proposing solutions adapted to the situation of the company.
- Representation before the tax administration: In the event of a tax audit or dispute with the tax authorities, a chartered accountant can represent the company to defend its interests.
By choosing a competent chartered accountant, small businesses can therefore be assured of being in compliance with tax rules and of benefiting from personalized support for the management of their accounts.
What you must remember
In conclusion, managing accounting and taxes can be complex for small businesses. It is therefore important to fully understand the tax rules that apply to VSEs and SMEs, as well as the tax obligations to be respected. By calling on a competent chartered accountant, small businesses can benefit from personalized support for the management of their accounts and for tax optimization. Do not hesitate to contact our accounting firm for more information.
