What Are the Allowances for Tax Calculations for You

Tax submissions can allow you, for example, to increase your profit margins if you align yourself with market prices including tax and to recover the equivalent of the VAT payable at your margins. You also have the opportunity to present more attractive prices to your customers, compared to your competitors who are subject to VAT.

For the Entrepreneurs

It is a derogatory regime whose implementation aims to provide financial support to auto entrepreneurs. However, it is important to note that you do not recover VAT on your purchases. But it is a regime that allows you to simplify your self-employed turnover declarations because you do not have to file a VAT return.

How does the auto entrepreneur VAT work?

In concrete terms, the principles specific to self-employed VAT are simpler than those of traditional VAT. First of all, you do not distinguish the amounts excluding tax from the amounts including tax at the level of sales invoices delivered to your customers. Then you can easily pay the VAT to your suppliers. Finally, you do not make a VAT declaration, you do not pay anything back to the Corporate Tax Services, but there is also no VAT recovery on the purchases you make.

  • The basic VAT exemption for self-employed persons therefore appears to be a double-edged sword. It is true that your customers do not pay VAT, which presents an irrefutable financial and commercial advantage. However, you cannot reclaim the VAT on the operating acquisitions you make. Concretely, if your activity requires very important costs for the start-up, this regime can turn out to be quite disadvantageous.
  • In addition, it is important to remember that you must necessarily indicate that you are a beneficiary of the basic VAT exemption on your auto entrepreneur invoices. In other words, not only the price of your products or services is HT, but you also have the obligation to make appear the mention: “Exemption from VAT, article 293B of the CGI” on the invoices which you deliver to your customers.

What are the limits of the auto entrepreneur VAT regime?

You should know that the basic franchise is directly linked to your status as a self-employed person. Therefore, once you exceed the turnover thresholds defined to limit the benefit of the VAT exemption, you immediately lose this advantage. However, you can remain under the self-employed or micro-enterprise regime as long as you respect the limit of the self-employed ceilings. If you want more details on this situation, you can do more advanced research or ask for information about exceeding auto entrepreneur limits. We devoted a previous article to this. Read it for information on the consequences of exceeding auto entrepreneur limits. Choosing an independent contractor tax calculator happens to be essential in this case.


However, it is important to note that the VAT exemption regime is not primarily reserved for auto entrepreneurs. This regime may also apply to other companies which comply with the defined turnover ceilings. In other words, when you decide to leave this regime, voluntarily or taking into account the fact that you no longer meet the criteria to be considered as a self-employed person, you will still be able to continue to benefit from the basic franchise of the self-employed VAT.


Important Questions to Ask Your Financial Advisor

Increase your retirement savings by 400% with one simple step. Sounds like a scam right? However, research has shown that using a financial advisor to help you create a written savings plan could increase your savings balance four times compared to those who go it alone. You don’t need to feel overwhelmed when finding a financial advisor. Asking a few simple questions first will help you find the right advisor for you.

What can you do for me?

Financial advisors offer a wide range of services from creating a long-term financial plan to picking individual stocks for your portfolio. Some will have industry specialties, such as financial planning for professional athletes, to offer an experienced perspective on your unique situation. Outlining the basics of the services they provide and who they typically provide them for is the first step to know if that advisor is right for you.

What is your communication style with clients?

Letting someone take a peek at your personal finances requires a lot of trust. Communication is critical to building and maintaining trust. Getting to know your financial advisor’s communication style before you commit can save you stress and anxiety. A good financial advisor will adapt their communication style to your preference allowing you to have as much or as little detail as you desire.

How do you get paid?

Paying too much for a financial advisor can cut into your hard-earned savings. Understanding how and when your financial advisor gets paid helps you know you are getting value for your money. Typically, advisors get paid a percentage based on assets under management, a commission for investment products, or a fee for each service they provide.

You work hard for your money. You owe it to yourself to find a great financial advisor who can make that money work for you. These questions are just a starting point on your journey to financial freedom.


Why Every Homeowner Needs Insurance

Most people know that their home is one of the largest financial investments they’ll make in their lifetimes. However, that investment is vulnerable to various risks. For example, brutal storms can hit, injuries can occur, or vandalism might strike. When it comes to maintaining the condition of your home and protecting yourself, it’s often best to be safe rather than sorry. That’s where home insurance poulsbo wa comes in. Having insurance in place is important to safeguard your home and family from financial risk.

Protect Your Home from Loss

Homeowner’s insurance covers damages to your home caused by a variety of hazards, such as wind, fires, vandalism, tornadoes, hurricanes and thunderstorms. Whether a small part of your home has sustained damage, or your entire property is in shambles, the average home insurance policy will help pay for repairs and replacements so that you’re not alone paying for the costs.

If you’re in the midst of choosing a homeowner’s insurance policy, be sure to check if a policy pays out damages on a replacement cost basis instead of an actual cash value basis. This will ensure that you’re getting the most financial protection possible. For example, imagine that a severe thunderstorm damaged your roof. An insurance policy that pays out damage on an actual cash value basis won’t cover for damage beyond what the roof is valued at. Therefore, if the cost to replace your roof is projected to be $4,000, but your insurance company will only cover $2,000 worth of damages, you won’t be getting much coverage. Whereas, if your policy helps with damages on a replacement cost basis, it’ll cover most of the costs to replace your roof.

Getting homeowner’s insurance should be a serious matter for any homeowner. Even if you have enough money saved up that’s reserved for home repairs, you can still benefit from an insurance policy.