Syntec Numérique welcomes this decision, and remains at the disposal of the government and tax authorities to help them refocus and simplify the system.
This decision is in line with the requests made by Syntec Numérique’s Tax Commission, which has been very active on this subject for several years. If you would like to take part in the secure software working group, please contact Anne-Dauphine Cambournac.
The system in brief :
Article 88 of French Finance Act no. 2015-1785 of December 29, 2015 for 2016 requires taxable persons liable for value-added tax (VAT) who record their customers’ payments using accounting or management software or a cash register system to use software that satisfies conditions of data inalterability, security, conservation and archiving with a view to control by the tax authorities.
This new obligation is set out in 3° bis of the I of Article 286 of the French General Tax Code (CGI).
There are two ways for VAT taxpayers to prove that these conditions have been met:
- or the software or cash register system is certified by an accredited body;
- or the taxable person has an individual certificate from the publisher of the cash register software or system certifying compliance with the conditions.
Failure to provide proof that the software or cash register system complies with the conditions laid down by law, by producing a certificate or individual attestation, renders the VAT taxable person liable to a fine of €7,500, as provided for in article 1770 duodecies of the CGI.
In order to verify compliance with this obligation, the tax authorities will be able to carry out unannounced inspections at the business premises of a VAT-registered taxpayer, in order to check that he or she is in possession of the certificate or individual attestation, and if not, to apply the fine. This new control procedure is set out in article L. 80 O of the French tax code.