FRANCE

Meru Accounting delivers specialized outsourced accounting and bookkeeping services precisely designed for the French market. Our experienced team adeptly manages France's complex financial regulations and is proficient in the leading accounting software prevalent in the region. We offer comprehensive financial management solutions that simplify your business processes, ensuring robust compliance with local legal requirements.

In France, indirect taxes are primarily governed by Value Added Tax (VAT) regulations. Here's an overview of VAT and other indirect tax laws in France:

1.Value Added Tax (VAT):

VAT is a consumption tax levied on the sale of goods and services at each stage of production or distribution. With a Standard Rate 20%; Reduced Rates 10% and 5.5%.

2.Customs Duties:

 It is imposed on imports and exports which is regulated by the European Union's common customs tariff.

3.Environmental Taxes:

 France has implemented various environmental taxes to aim at reducing pollution and promoting sustainability, by implementing taxes on energy consumption and carbon emissions.

4.Local Taxes:

 There are certain local taxes which may also be imposed by municipalities or regional authorities living locally.

5.Tourism Taxes:

  These are the taxes levied on tourists staying in hotels or other accommodation facilities like guest houses, paying guests etc.

6.Stamp Duties:

Taxes imposed on certain legal documents and transactions.

Understanding and complying with these indirect taxes, it is essential for businesses operating in France to ensure proper tax planning, compliance, and risk management. It's advisable for businesses to seek guidance from tax professionals or legal experts to manage the complexities of France's indirect tax system effectively.

In France, there are several software options available for bookkeeping, catering to businesses of different sizes and needs.

Some popular bookkeeping software used in France include: 

1.Cegid :

It offers a variety of  accounting and financial management software solutions tailored to the needs of small, medium, and large businesses. This includes features for general ledger, accounts payable and receivable, invoicing, payroll, and reporting.

2.QuickBooks:

It was  developed by Intuit,  this software is widely used by small businesses worldwide because of its affordability, including in France. It offers cloud-based accounting software solutions with many features for invoicing, expense tracking, bank reconciliation, and financial reporting.

3.Exact Online: 

It provides cloud-based accounting and financial management software solutions for small and medium-sized businesses. Key features of this software are accounting, invoicing, project management, and CRM.

4.Quadra Compta:

It offers accounting and financial management software tools specifically designed for French businesses, including features for general ledger, accounts payable and receivable, VAT management, and reporting.

The official currency of France is the Euro (€), abbreviated as EUR. It replaced the French Franc (FRF). Euro is the monetary unit for  accounting and bookkeeping monetary data of all the public as well as small companies. The Euro is the legal tender used in France for all transactions, including cash and electronic payments. It is also the official currency of several other European Union (EU) member states.

The primary and official language spoken in France is French. French is not only the national language but also holds official status in many international organizations. French is the dominant language, and regional languages such as Breton, Occitan, Catalan, and Basque are also spoken in certain regions of France. French is the most used language for storing records and information in every field here we say , in bookkeeping records, transactions and also used in the accounting field.

In France, companies are subject to various audit requirements depending on their legal structure, size, and activities. 

1.Statutory Audit:

Most large and medium-sized companies in France are required to undergo a statutory audit conducted by an independent auditor or a firm of auditors. Other entities specified by law, such as credit institutions and insurance companies. The purpose of the statutory audit is to provide assurance on the accuracy and reliability of the company's financial statements to shareholders, stakeholders, and regulatory authorities.

2.Financial Statements Audit: 

The audit of financial statements involves examining the company's accounting records, financial statements, and internal controls to express an opinion on whether they are true.

3.Scope and Procedures: 

The scope and procedures of the audit are determined by applicable auditing standards, including those issued by the French professional accounting body. The audit typically includes tests of transactions, analytical procedures, confirmation of balances with third parties, and assessment of internal controls.

4.Reporting Requirements: 

Auditors are required to issue an audit report in accordance with French auditing standards, providing their opinion on the financial statements' compliance with applicable accounting standards; it includes additional information or disclosures required by law or regulation.

5.Penalties for Non-Compliance:

Failure to comply with statutory audit requirements or submission of inaccurate financial statements may result in penalties, fines, or legal consequences for the company's directors and officer

In France, payroll processing is a complex task that involves various regulations and requirements. Here's an overview of payroll in France:

1.Employment Contracts and Agreements:

 Before hiring employees, companies in France must establish employment contracts that outline terms and conditions of employment, including salary, benefits, working hours, and termination procedures. French labour law mandates certain statutory rights and protections for employees, including minimum wage requirements, paid leave, and social security benefits.

2.Deductions and Withholdings:

Various deductions and withholdings are required by law, including income tax, social security contributions, and other mandatory employee benefits such as in healthcare.

3.Payroll Taxes:

In these taxes employers may be subject to other payroll taxes, such as the apprenticeship tax and the contribution to the financing of family benefits. 

4.Social Security Contributions:

Social security contributions in France fund various social welfare programs, including healthcare, unemployment benefits, and retirement pensions.

5.Employee Benefits :

In addition to salary and social security contributions, employers may offer various employee benefits, such as paid vacation, sick leave, and retirement plans. Some benefits may be required by law or collective bargaining agreements.

In France, Generally Accepted Accounting Principles (GAAP) are primarily established by the French accounting standards authority, serving as the foundation for financial reporting by companies operating in France. 

1.Plan Comptable General (PCG): 

This   provides a comprehensive set of accounting rules and principles that govern and regulate the preparation and presentation of financial statements covering various aspects of financial accounting, which includes recognition, measurement, presentation, and disclosure of financial information.

2.Auditing Standards:

 Auditors in France are required to follow some specific auditing standards established by the French professional accounting body.

3.Regulatory Framework: 

In addition to accounting standards, French companies must comply with relevant legal and regulatory requirements, including the French Commercial Code and tax regulations, when preparing financial statements

 4.International Financial Reporting Standards (IFRS):

While French companies primarily follow the PCG, certain entities, such as listed companies and groups with international operations, may also apply International Financial Reporting Standards (IFRS) as endorsed by the European Union.

At Meru Accounting, we help businesses deal and have a keen understanding around custom duties, stamp duties, tourism taxes and other tax laws. Our main aim is to provide all the necessities for bookkeeping and accounting easily through our excellence and expertise.