Tax for Sales: Your Options for fast Decision


A mason is subject to a tax audit which leads, in particular, to a Sales tax adjustment. As such, the auditor denies him the possibility of recovering the Sales tax he has paid for invoices paid to his suppliers (what is called the right of deduction). Wrongly? With the free sales tax calculator you can find the best results.

No invoices, no right to deduct

A mason is subject to a tax audit during which the auditor decides to exclude the accounts for lack of probative value. Therefore, for the calculation of the sums due for the tax adjustment, he proceeds to a reconstitution of the taxable profits and retains a charge rate which he estimates at 70%.

  • At the end of the check, the mason must, in particular, pay an additional Sales tax, which he disputes. He believes that the auditor has adopted a contradictory position: he retains a charge rate of 70% for the calculation of his taxable profit, but refuses to take this same charge rate into account for the calculation of Sales tax. The mason had to pay the invoices of his suppliers, which, according to him, was indeed a burden. However, the auditor refuses that he can recover the Sales tax paid on these invoices!
  • As a reminder, the principle in this matter is as follows: a professional carrying out work invoices his services with Sales tax, Sales tax which he must remit to the administration. This is called the collected Sales tax. This obligation has as a corollary a right of deduction: the trader can deduct from the Sales tax collected on behalf of the administration the Sales tax that he himself paid to his suppliers on the occasion for example of purchases of materials. Clearly, to calculate the amount of Sales tax due to the administration, professionals must perform the following calculation: Sales tax collected Sales tax deductible.

Since he has paid Sales tax on his supplier invoices, the mason asks to exercise his right to deduct… which the administration refuses him: the mason was unable to provide him with the invoices issued by his suppliers. However, the Law is clear on this subject: if a professional wishes to benefit from the right of deduction, he must be in possession of the original invoice justifying this deduction. This is confirmed by the tax judge who validates the tax adjustment.

What Are The Consequences For Your Business?

You receive the invoice from your supplier who delivered the furniture you bought last month to equip the office of your new employee. You also receive the invoice from your accountant for the mission of closing the accounts of your company. In both cases, the invoice obviously includes the Sales tax due in respect of these operations. When can you, will you have to declare and charge this deductible Sales tax on your declarations? In some cases, it is possible to obtain an NWFP exemption.