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The provision of services encompasses a very wide area and generally concerns workers who exercise their activity as a freelance or micro-enterprises in the tertiary sector. In general, what they have in common is that their activity consists of providing services. This involves exercising a specific skill in the service of a professional or private client in return for remuneration. But the invoicing of a service is not done at random: there are mandatory information, the applicable VAT rate as well as other mandatory specifics. Learn all about the BA.BA of billing services in this article.
Prerequisites for billing services: the status of auto-entrepreneur
The first thing to know is that in order to be able to bill for its services, it is necessary to have a status. Thus, to obtain the status of auto-entrepreneur, there are a few steps to follow, the first of which is to make the declaration of auto-entrepreneur online with the Center de Formalités des Entreprises. The documents to be provided for this are as follows:
- a copy of the identity document,
- the “P0 Micro-Entrepreneur” form, which is made up of several parts: the activities carried out, civil information, the choice of domicile, the option chosen for the payment of contributions, etc.
Note that the declaration of start of activity called Cerfa P0 is filled in automatically during online registration. Since January 1, 2020, ACRE has evolved and its attribution is again subject to conditions of status and resources.
At the time of registration, the future self-employed person will have to make a choice concerning his income tax. He will have to choose between classic taxation and final tax payment. It is necessary to choose according to what can be advantageous for the activity carried out.
The second step is to provide additional documents for craft and commercial activities. In fact, artisans or traders are subject to other mandatory steps in the creation of their micro-enterprise.
Registration in the Trades Directory for craftsmen
Self-employed persons who carry out a craft activity as a complementary or main activity must register with the RM. They must provide certain documents to the CFE of the CMA on which they depend, in particular the proof of address as well as the sworn declaration of non-conviction which certifies that the person concerned is not the subject of any criminal conviction, nor of civil or administrative sanction which could prohibit him from managing or carrying out a craft activity.
You should know that registration is free, but the craftsman must pay additional taxes for consular room costs, which will be levied at the same time as the social contributions which must be paid every month or every three months.
The case of regulated professions
There are professions that can be practiced in self-employment, but only when the self-employed person has qualifications, a diploma or professional experience. These are trades in the construction, repair and maintenance of buildings, trades consisting in manufacturing fresh products, maintaining and repairing vehicles, aesthetics trades and the field of services in general.
Everything you need to know about the invoice for services
By definition, an invoice is an accounting document in which all the different aspects of a commercial transaction appear, here a service provision for example. To establish it, it is necessary to respect the standards in force and this, regardless of the legal form of the company.
Provision of services: what is the invoice for?
Article L.441-3 of the Commercial Code stipulates that the function of the invoice is to identify the creditor and the debtor, but also to follow the activity of the company by tracing the amounts excluding taxes and all taxes included in the accounts. This document also provides the elements which make it possible to draw up the annual accounts and constitutes a support for exercising VAT and managing taxes.
The invoice traces the details of the negotiation between the service provider and the beneficiary and offers the latter a summary of all the terms and conditions of the service received while showing the amount of the transaction. Finally, the invoice for the provision of services serves as proof if a dispute arises between the buyer and the seller.
Is the invoice compulsory?
In a business, the majority of financial transactions must be the subject of an invoice. This document serves to certify the completion of the service and proves the officialization of the sale.
Following a service provision, the establishment of an invoice is mandatory in the following cases:
- all B to B services,
- any sale of B to C services, if the individual so requests,
- any service provided by a professional to an individual when the amount is greater than 25 euros including tax, when the sale is made remotely or at the express request of the customer.
The service provider risks a fine of € 75,000 and the tax authorities are entitled to demand a tax adjustment up to 50% of the invoice amount in case of default.
Who can bill the services?
Who can issue an invoice for the provision of services? Can the individual issue an invoice? The answer is no. In fact, in France, this means that a person is underground, which is illegal. Only a company registered in the trade and companies register can prepare and issue invoices. An individual without status, in other words who is not registered, is not in a position to bill a service to another individual.
Nonetheless, an individual may be authorized to bill for his services on the condition of creating a sole proprietorship in order to obtain a CFA registration as well as a Siret number.
Note: a third party can issue an invoice in the case of a subcontract or billing service contract, but only if the agent is legally exercising on behalf of the seller.