New obligations have been introduced in addition to already existing rules, e.g. reporting to tax authorities and to the authorities collecting social security contributions or information obligations vis-à-vis users regarding their social and tax obligations in France.
This declaration had to be submitted for the first time in January 2020 on income generated in 2019.
Each year, platforms must send to their users, before 31 January, a document that summarises the gross amount of transactions of which they have been informed and which they have received through them during the previous year. This document must contain information related to the platform identity, user identity, number and amount of transactions carried out through the platform, etc.
Penalties for non-compliance with the above obligations to provide tax and social information to the users may be up to EUR 50,000. The fine for the first non-compliance is limited to EUR 5,000.
Online marketplaces must send to the FTA an annual document that summarises all the information provided by their users. This return had to be submitted for the first time in January 2020 on income generated in 2019. The FTA automatically forwards this report to the social security authorities.
This report must contain the same information as the one sent to the users. In principle, it has to be submitted in January N on income generated in N-1.
A sanction mechanism is applied for non-compliance, i.e. a fine of 5% of undeclared amounts for late or incomplete submission.
There is also a “name and shame” sanction by publishing on the Internet the identity of online marketplaces repeatedly not complying with French obligations, which remains online for 1 year respectively and will be withdrawn as soon as the marketplace has paid the outstanding taxes and fines.
The solidarity for payment will concern:
The solidarity will be implemented following a 3-step procedure:
Please note that from 1 January 2021 the VAT treatment for sales via online platforms will change, thus the above-mentioned measure will no longer be fully applicable
If you have any questions about WTS Global or our global services, please get in touch.
We will respond to you as soon as possible.