Tax paid by auto-entrepreneur roofer using subcontractor?

leepm

24 Aug 2015 at 08:08 · Viewed 1923 times

I am a registered auto-entrepreneur roofer, carpenter and joiner business in France. So far I have just been doing joinery work and the system is working fine for me and all of my sales for the joinery products I make are charged at the lower 14% tax rate. I am just quoting for a roofing job and will need help from a friend who is also registered who will invoice me directly for his work and not to the client.

If I charge the client 20,000 euros of which 5,000 euros will be materials and I receive an invoice from my subcontractor for 5,000 euros I need to know how I will be taxed.

Will I pay the lower 14% tax rate on the materials of 5,000 euros I charge to the client?
Can the subcontractor’s fee of 5,000 euros be classified as supplies to the client and be charged at the lower 14% tax rate or will the whole invoice amount of 20,000 euros be subject to the higher 26% tax rate?

Answered