Value Added Tax (VAT) (Taxe sur la valeur ajoutée -TVA) is an indirect tax on consumption.
All persons (firms or self-employed workers) regularly making paying business transactions are subject to VAT.
French and Monegasque territories, including their territorial waters, form a customs union organized by the Franco-Monegasque customs agreement of 18 May 1963. French customs regulations apply directly in the Principality of Monaco.
The Principality is incorporated into European customs territory (although it remains a third country with regard to the European Union). Goods and services in the Single European Market can thus be accessed from Monaco.
Value Added Tax is levied on the same basis and at the same rate as in France.
The most commonly applied rates are:
- The usual rate of 20%
- The reduced rate of 10%, except for basic products (5.5 %)
Building work on residential accommodation
The following forms are available if you wish to benefit from the reduced rate:
However, in order to reduce the administrative burden for clients and professionals, it is not necessary to complete the Simplified Attestation No. 353-0026 if the total cost of repair and maintenance works, including all taxes, is less than 300 euros, provided that the invoice includes the following information:
- Name and address of client and building on which works are being carried out
- Nature of the works
- Note to the effect that the building was completed more than two years ago
Transactions subject to VAT
Key transactions subject to VAT are:
- Transactions forming part of business activities that are performed, for a charge, by a taxpayer - i.e. a person being self-employed either ordinarily or occasionally, whatever their legal status
- Transactions specifically designated by the law (self supplies of goods, certain purchases, imports, etc.)
- Transactions that are usually exempt but may be taxed at the option of the person performing them (transactions performed by persons carrying out exempted non-commercial activities, transactions performed by banking and financial institutions, rentals of unfurnished property for industrial, commercial or professional use)
- Transactions contributing to the production and delivery of property