Dictionary

Fiscal, Administrative and Customs dictionary

Activity unit

Branch, firm.

Branch

A branch is not a firm with its own capital or director. A branch is a stable part of a company, the whatever country in which it is established. The branch has no independent management or decision-making powers.

CA3

French VAT declaration form for the French tax authorities.

Court order

Document providing a chronological report of the events of a legal case: history of the dispute, decision, legal proceedings taken, orders ratified by the president of the tribunal and conclusion of the case to date.

Court order for payment

Quick and low-cost legal procedure which enables a creditor to oblige the debtor to honour his commitments.

Deductible VAT

VAT paid (input VAT).

Directives

General indications given by the military, political, religious, etc. authority or by a trend in public opinion. Sources: Dictionary of the Académie française, 8th Edition (1932-5)

Established

Opening of an office (branch) which must keep profit and loss accounts and balance sheet accounts. Generates activity in the country.

European Union (EU)

The European Union is a group of democratic countries in Europe which have decided to work together for peace and prosperity.

The European Union has five institutions, each of which plays a specific role:

• The European Parliament (elected directly by the citizens of the member states);
  
  
• The Council of the European Union (the representative of the governments of the member states);
  
  
• The European Commission (the engine of the Union and its executive body);
  
  
• The Court of Justice (guarantees that legislation is respected);
  
  
• The Court of Auditors (body controlling the correct and legal use of the Union's budget).
  
  

Alongside these five institutions are five other important bodies :

• The Economic and Social Committee (expresses the opinions of the organised civil society in the economic and social sectors);
  
  
• The Committee of Regions (expresses the opinions of the local and regional communities);
  
  
• The European Central Bank (responsible for monetary policy and managing the euro);
  
  
• The European mediator (handles complaints from European citizens concerning poor administration on the part of the Union's institutions or bodies);
  
  
• The European Investment Bank (contributes to achieving the objectives of the Union by financing investment projects);
  
  

Finally, several other agencies and bodies complete the system.

Fiscal agent

VAT registered company, authorised by the tax authorities to represent, for VAT purposes, an individual or legal entity established within the European Union. The fiscal agent is not responsible for the operations declared at the tax authorities.

Fiscal representative

1. VAT registered company, authorised by its local tax authorities to represent, for VAT purposes, an individual or legal entity not established in the European Union. The tax representative is jointly responsible for operations relating to French VAT and undertaken by the entity not established in the European Union.
   
   
2. VAT registered company, authorised by its tax authorities to file requests for VAT reimbursement within the framework of the 13 th European directive. By extension, this term is also used under the 8th directive.
   
   

FTC

French tax code.

Gross VAT

VAT collected (output VAT).

Intangible services

1. Transfers and concessions of rights.
   
   
2. Rental of movable assets other than means of transport.
   
   
3. Publicity services.
   
   
4. Consultancy, engineering, research and accountancy services.
   
   
5. Data processing.
   
   
6. Insurance, banking and financial operations.
   
   
7. Provision of personnel.
   
   
8. Services from "transparent" intermediaries.
   
   
9. Obligation not to practise.
   
   
10. Telecommunications services. Since 1st July 2003
    
    
11. Radio and television broadcasting services.
    
    
12. Services provided by electronic means.
    
    

Sources: art. 259B - FTC - appendix 2

Intra-Community Acquisition (ICA)

Arrival in one of the countries of the European Union of goods, products or merchandises purchased from a supplier in another country of the EU or transferred from a stock located in another country of the EU.

Intra-Community Delivery (ICD)

Departure of goods; products or merchandise sold to a customer in the EU or transferred to a stock located in another EU country.

Intrastat report

Monthly declaration illustrating the flows of all goods (including samples) arriving in an EU country from another country in the EU or leaving one of the EU country for another country in the UE. Since 1993 (opening of the borders), this declaration has been the responsibility of the VAT registered company.

Law

A regulation enacted by the sovereign authority, which governs, orders, permits or forbids.

Sources: Dictionary of the Académie française, 8 th Edition (1932-5)

Liable to VAT

Entities with a VAT number

Liaison office

Office established in a country other than that of the head office for marketing and non-commercial purposes.

Net VAT

The VAT balance (output minus input).

Not established

A company is considered as "not established" when it has no office, branch or activity unit in the country where it undertakes purchasing and/or selling and/or resale operations.

Respondent (fiscal)

Tax liable entity established in France accredited by its Tax Center which has the mission to submit a VAT return in the name of the foreign operator and to pay the due tax in the name of the operator on behalf of its French customer.

Self-assessment

This mechanism allows the receiver to declare the due tax as the liable of it and to simultaneously deduct it when the receiver has a right to deduction.

Services which can be materially located

1. Rental of means of transport,
   
   
2. Services related to a building.
   
   
3. Certain transport services and associated services.
   
   
4. Cultural, artistic, sports, scientific, educational, recreational services.
   
   
5. Work and assessment on movable assets.
   
   
6. Accommodation and sale for on-site consumption.
   
   
7. Services from "transparent" intermediaries in certain operations.
   
   

Sources: art. 259A - FTC - appendix 2

Subsidiary

A subsidiary is a company with its own capital and director, and this in whatever country it is established. The majority shareholder of the subsidiary's capital is the parent company.

Tax point

A right that the tax authority can exercise after a given deadline vis-à-vis a taxpayer to obtain payment of the tax.

VAT certificate

Document issued by the fiscal authorities governing the claimant. Proof of claimant's liability to VAT facilitating either VAT registration of claimant in another EU country (6 th European directive) or the right to VAT reimbursement (8th European directive).

VAT recovery

Input VAT on purchases to taxable sales (6 th European directive). Right to reimbursement of VAT paid to suppliers in another country (8th and 13 th European directives).

VAT reimbursement

Financial flow following the introduction of a request for VAT reimbursement (6 th, 8 th and 13 th directives of the E.E.C.)

VAT (popularisation)

• VAT is a tax on consumption: calculated according to value-added
  
  
• The principle of VAT is neutrality for economic operators (VAT is not a cost)
  
  
• The company collects the VAT.
  
  

Since 01/04/2001, the so-called "normal" rate in France is 19.60%. Each country in the European Union has its own VAT rates.

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