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Training organizations follow specific VAT rules. Submission, exemption, subsidiarization or sectorization: there are many questions.
In principle, educational activities fall within the scope of VAT. They are subject to VAT.
However, under certain conditions, it is possible to request that these services be exempt from VAT.
To do this, it is necessary in particular to comply with a very strict formalism: declaration of activity, request for exemption from VAT, validation of the exemption request by DREETS, compliance with the conditions imposed by DREETS.
These are all steps that must be followed carefully to avoid the risk of undergoing a tax adjustment in the event of a tax audit.
Before applying for VAT exemption, a number of questions should be asked. Indeed, it is not always relevant to benefit from VAT exemption when you are a training organization.
Applying for VAT exemption is relevant when offering training to individual customers or professionals who do not recover VAT. If the training courses are provided to professional customers who recover VAT, the VAT exemption is not interesting.
An analysis of the Company's cost structure is essential before applying for VAT exemption. By being exempt from VAT on its sales, the company will no longer be able to deduct all or part of the VAT on its purchases. Depending on the type of costs that the company incurs (rent with or without VAT, service providers exempt from VAT, etc.) the benefit of the exemption may be significant or very limited.
By being exempt from VAT, the company will be subject to payroll tax. This tax, which can amount to up to 13.6% of salaries, is applicable to training organizations that benefit from VAT exemption. It is therefore necessary to analyze the amount and type of remuneration that are planned by the company in order to allow it to have all the elements in hand before filing an application for VAT exemption.
From the creation and structuring of the training organization to possible disputes with the tax authorities, we support you at every key moment in the life of your company.
We support you during the launch of your business to help you make the best choice in terms of VAT.
We also support existing organizations that question the opportunity to benefit from VAT exemption during their activities. We then analyze the impact that the VAT exemption could have had on the final years and the impact that it could have on the coming years.
We also assist you in the event of a tax audit in order to ensure the preservation of your interests vis-à-vis the tax authorities.
Let's organize a meeting to talk about it!
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