Dry January : healthy and wealthy
VAT benefits
The month of January is traditionally devoted to the stoic keeping of good resolutions, but also to accounting closings, budget analyses and cash flow optimisation.
The last point concerns both businesses and individuals.
How to increase your cash flow without external financing?
- by reducing costs and charges
- by collecting outstanding amounts (receivables, debts, credits)
Among tax credits, the VAT can represent significant amounts:
1. French VAT: for registered companies
- Companies with a VAT credit of more than €150 or €760 (depending on the tax regime and reporting frequency) can request its reimbursement from the tax authorities.
- The amount of the VAT credit results from the difference between the collected and the deductible VAT. It’s therefore important to take into account all eligible expenses.
Consider deducting VAT on travels and expenses of your employees!
A time-consuming process unless it’s automated or outsourced.
2. Foreign VAT: a real Cash back for non-registered companies
The VAT is refundable to the foreign eligible companies by all the EU member states and by many non-European countries. The reclaims can be done quarterly and annually.
Don’t wait unil the annual VAT reclaim deadlines !
Accelerate your cash back by filing immediately your 2023 VAT reclaims and continue doing it on a quarterly basis for your 2024 expenses.
And what about individuals ?
Except for purchases exported from certain countries, the VAT represents a non-refundable charge. Its amount varies according to the applicable VAT rate which depends on the nature of the purchased services and goods. For example, alcoholic drinks are subject in France to the standard VAT rate of 20% versus reduced rates for non-alcoholic drinks:
- 5.5% for take-away drinks (in cans, bricks, etc.)
- 10% for drinks consumable on site (in glasses, cups, etc.)
As for mocktails and other alternative beverages, they can benefit from reduced VAT rates up to a certain content : 1.2% abv or 0.5% abv for beers.
Reducing alcohol consumption can help reducing costs, but also improving health.
Let’s keep our January resolutions 😊
BtoBnice is accompanying companies in VAT Recovery worldwide: contact@btobnice.com
