French General Tax Code
In forceI. - Farmers liable for value added tax pay this tax in quarterly instalments equal to at least one fifth of the tax due in respect of the previous year or the last financial year for which the accounts have been closed. Any additional tax due on the annual return referred to in 1° of I of article 298 bis is paid when the return is filed. If the operator considers that the instalments already paid in respect of the year or financial year reach the amount of tax for which he will ultimately be liable, he may defer payment of the following instalments. If the amount of tax is more than 30% higher than the amount of the instalments paid, the late payment interest provided for in article 1727 and the increase provided for in Article 1731 are applicable.
The tax is also payable on the basis of the declaration provided for in the last sentence of 1° of I of article 298 bis and is paid when this is filed, subject to any deduction of any advance payments made in respect of the period covered by this declaration.
Farmers are exempt from making advance payments when the tax due in respect of the previous calendar year or the last financial year ended, before deduction of value added tax relating to property constituting fixed assets, is less than €1,000.
However, farmers may, on their five-yearly option, pay the tax on the basis of quarterly or monthly returns indicating on the one hand the total amount of transactions carried out and on the other hand the details of their taxable transactions.
II. - New taxable persons are authorised, during their first tax period, to pay value added tax in quarterly instalments, the amount of which they determine themselves but each of which must represent more than 70% of the tax actually due for the corresponding quarter.
III. - When the duration of a financial year is not equal to twelve months and farmers have opted for an annual return as defined in the second sentence of 1° of I of article 298 bis, the latter may not cover a period exceeding twelve months. If the financial year exceeds twelve months, they must file two returns for that financial year. The first must cover the period between the first day of the financial year and the last day of the twelfth month following, and must be filed before the fifth day of the fifth month following the last day of the period covered. The second declaration must cover the period between the first day of the month following the period covered by the first declaration and the last day of the financial year concerned, and must be filed before the fifth day of the fifth month following the end of the financial year. If the financial year in question lasts less than twelve months, it must be filed before the fifth day of the fifth month following the end of the financial year. The taxes due under articles 298 bis and 302 bis MB, calculated as stated in III and, where applicable, in 1° or 2° of IV of the latter article, are settled when these declarations are filed.
