Are royalties on intellectual property subject to TVA in profession liberale?

Audrey
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Just to recap, I want to sell a software program, to which I own the rights, online. I have found an intermediary company called FastSpring which processes the orders, pays all VAT in whatever country the software is sold, handles and pays all credit card transactions and commissions ( I myself won’t need to have a merchant account with any credit card company), all in exchange for 9% of sales. The remaining 91% will be paid to me as a royalty. It’s like how Amazon functions for self-published authors. They provide distribution and payment services, and then pay the author a royalty.

I am currently in profession liberale status. About 48% of my revenue is from formation professionnelle (properly authorised and declared courses through DIRECCTE which exempts my courses from TVA) and the rest is consultations. The revenue from consultations is about 18.000 euros/year, so therefore well below the amount which is subject to TVA.

My question: are the royalties I receive from the software sales (or eventually any other royalties on ebooks etc) subject to TVA? Because the TVA on the product will have been already been paid, no matter where the sales are, including in France.

So for example, if software royalty comes to 20,000 euros/year, bringing up my non-teaching revenue to 38,000 euros/ year, will those earnings be subject to TVA even though the TVA has been paid on the product sold?

How would that revenue be entered on a standard accounting form of Journal Recettes et Depenses Professionnel Liberals? That revenue is not fees (honoraires). Or would I need to change to some sort of combined tax status?

Answered
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