The UA regime (single taxpayer)
The single taxpayer regime
The single VAT taxpayer regime comes into force on January 1, 2023. In order to benefit from it, it is imperative to opt for this regime before October 31, 2022.
As of January 1, 2023, a new tax regime allows taxable persons established on French territory and linked to each other financially, economically and organizationally to constitute a single taxable person (AU) for VAT.
The members of this single taxable person designate a representative from among themselves who carries out the declarative obligations, makes the payment of VAT and the requests for VAT credit refunds, for all of them.
This representative must formulate the option of creation to the business tax service of which it depends, at the latest on October 31, 2022 for an implementation on January 1, 2023.
Under Article 11 of Council Directive 2006/112/EC of November 28, 2006 on the common system of value added tax, the "single taxable person" mechanism allows each EU Member State to consider as a single taxable person persons established on its territory who are legally independent but who are closely linked to each other financially, economically and organizationally.
This system aims to contribute to a better economic neutrality of the tax and to simplify the tax management of companies.
The option offered to taxable persons to form a single taxable person applies in all sectors of economic activity as long as its members are taxable persons established in France and they are linked financially, economically and organizationally.
The single taxable person is constituted on the basis of an option of entities meeting these conditions. These entities designate a representative among them who undertakes to fulfil all the declaratory and payment obligations of the single taxable person related to the value added tax (VAT).
When a single taxable person is created or when a new taxable person joins a single taxable person, the member loses its status as a taxable person. As a result, supplies of goods and services between members of the single taxable person are internal transactions outside the VAT system.
For the determination of the deduction rights of the single taxable person, each member constitutes a separate business segment.
This new arrangement has no impact on the operation of taxes assessed and collected as in the case of VAT.
The single taxpayer regime is also incompatible with the optional consolidation of the payment of VAT and similar taxes.
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