11: Business value added tax

Companies whose business value added contribution for the year preceding the year of taxation exceeds €1,500 must pay:

- no later than 15 June of the year of taxation, a first instalment equal to 50% of the business value added contribution;

- no later than 15 September of the year of taxation, a second instalment equal to 50% of the business value added contribution.

The business value added contribution used for the payment of the first and second instalments is calculated on the basis of the value added mentioned in the last income tax return required pursuant to Article 53 A on the date of payment of the instalments. Where applicable, the amount of the second instalment is adjusted so that the first instalment corresponds to the value added mentioned in the income tax return required in application of article 53 A on the date of payment of the second instalment.

Taxpayers may, under their own responsibility, reduce the amount of their instalments so that they do not exceed the amount of the assessment that they consider is actually due for the tax year. To determine this reduction, they take into account the reduction in their taxable added value as a result of the exemptions mentioned in 1 of II of Article 1586 ter and the rebate provided for in Article 1586 quater.

For the application of the exemptions or reductions in business value added contributions provided for in Article 1586 nonies, businesses are authorised to limit the payment of their business value added contribution instalments in the proportion between:

- on the one hand, the total amount corresponding to the exemptions and reductions in business value added contributions in respect of the previous year, pursuant to 3° of article 1459, articles 1464 to 1464 I bis, article 1464 M, articles 1465 to 1466 F and article 1478 bis;

- and, on the other hand, the amount referred to in the seventh paragraph plus the total amount of business property tax due in respect of the previous year.

A decree specifies the conditions for the application of the sixth to eighth paragraphs.

The year following the year of taxation, the taxpayer must make the final settlement of the business value added levy on a declaration to be submitted by the second working day following 1 May at the latest. This declaration must be accompanied, where applicable, by payment of the corresponding balance. If the final settlement shows that the advance payments made are greater than the assessment actually due, the excess, less any other direct taxes owed by the taxpayer, is refunded within sixty days of the second working day following 1 May.