In order to simplify their situations and avoid any breach of their legal obligations, many sellers on e-commerce sites choose to practice in the form of a micro-enterprise. Update on the different obligations of e-commerce sellers in terms of Sales tax and on the solution that is the micro-enterprise.
Reform of the Sales tax in e-commerce: the micro-enterprise under the caudine forks
Faced with the social and fiscal difficulties encountered by companies, the choice of micro-enterprise is more and more chosen among e-commerce professionals. With the sales tax calculator by zip code you can have the best choice.
Never have the obligations of e-commerce sites in terms of Sales tax been the subject of so much news. Faced with the finding of the General Inspectorate of Finance (IGF) according to which 98% of sellers working through marketplaces (platforms allowing distance selling) in France are not registered for Sales tax, a major reform in this area will occur in January 2021.
While at present only 538 sellers out of 24,459 are registered for Sales tax, tax bodies estimate that the state suffers a shortfall of around 285 million euros each month. A guarantee mechanism (solidarity) will emerge. The micro-enterprise regime can be a good choice for those who want to easily comply with the new legal provisions thanks to simplified tax obligations.
E-commerce: fight against Sales tax fraud
The reform which will take place on January 1, 2021, with the aim of combating Sales tax fraud in e-commerce, should disrupt the habits of marketplaces (so-called marketplaces). Since most sellers on marketplaces are not registered for Sales tax, the government has established joint and several liability for Sales tax payment for platforms with at least 5 million unique visitors per month.
- In this way, the State could well succeed in recovering, at least in part, the 285 million euros of shortfall relating to the payment of Sales tax on e-commerce sites. For sales below 150 €, sellers located outside the EU will still not be liable for Sales tax, but the sales platform will be. Beyond 150 €, sellers are liable for Sales tax on a personal basis, but the platform will be jointly responsible for these sums. Thus, in the event of non-payment of Sales tax by the merchant, it is the platform which will have to free itself from these sums.
- In order to simplify the procedures for sellers and platforms concerning the Sales tax declaration and the final payment of the latter, a “one-stop-shop”, taking the form of a digital platform, will soon be set up. What to encourage platforms and sellers to better respect the tax obligations of a micro-business or any other legal form, in order to avoid fraud in the future, and to walk towards better tax fairness, all businesses confused.
E-commerce fight against Sales tax
Towards fairness in taxes between traditional and online businesses
The enactment of these measures concerning Sales tax on e-commerce sites follows numerous complaints from traditional businesses, according to which rivalry with e-commerce sites is causing a lot of damage. Indeed, faced with numerous taxes and additional contributions, in particular due to local taxes and the traditional management costs of their physical stores, competition in terms of Sales tax is not viable.