Are cotisation charges on materials purchased different to labour?
I am a mechanic in France and have had my business in France now for two years. I was advised at the outset that I have to pay cotisation tax on the complete invoice (facture) which includes both labour and materials purchased to complete the work at a single rate of 24.6% (old rate).
Please can you advise if this correct as I have now been advised that the labour aspect should be at one rate of tax (24.6% - old rate) and the materials at the different rate (14.1% - old rate) under the category of ventes de marchandises. If this is the case it will make an enormous difference to my cotisation charges and can I claim back any of the previous tax paid incorrectly.
Looking back on my question and you speaking to RSI on my behalf you stated both labour and materials have to classified at the one rate of 24.6% (old rate) and this I have done for the past two years. Please can you confirm there have been no changes to this arrangement and the local adviser I used was incorrect with his interpretation of the facts which developed into a costly waste of time. I will not be using him again, hence re-registering with yourself.