Tax on materials
- Select a language for the TTS:
- UK English Female
- UK English Male
- US English Female
- US English Male
- Australian Female
- Australian Male
- Language selected: (auto detect) - EN
Play all audios:
I AM AN ARTISAN MICRO-ENTREPRENEUR. I BILL CUSTOMERS FOR LABOUR AND MATERIALS. I PAY TAX VIA THE LIBÉRATOIRE METHOD QUARTERLY. DO I HAVE TO DECLARE THE AMOUNT I AM PAID FOR THE MATERIALS?
Yes, you must declare the amount invoiced. This includes amounts charged for materials you have bought, so you are paying income tax and social charges not only on your income, but also on
what you charge to cover your material costs. It is often the case that if expenses amount to more than a quarter of your income, the _micro-entrepreneur_ is costlier than a traditional
business regime. The scheme is fine for those with few expenses but when expenses, eg. materials, are invoiced, it may lose its advantages with regard to tax and cash flow. _This question
was answered by Olaf Muscat Baron who is a Fellow of the Chartered Association of Accountants UK, a French expert comptable and an International tax advisor._ _He is the principal accountant
of Fiscaly, an accountancy firm based in the Dordogne._ _See www.fiscaly.fr or call 09 81 09 00 15_