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A derogation which applies, nevertheless, the theory of the abnormal act of management to Sales tax is established by the last paragraph of point 6 of I of article 6 of the Sales tax code which provides that even in the absence of relationship of dependence between the seller and the reseller (in our opinion not taxable), the base at the taxable seller is constituted by the selling price of the reseller (not taxable), when the taxable person does not provide proof that he acted in the best interests of his business.

Thus, with regard to Sales tax:

The provision of a service without consideration does not entail a claim for a fictitious Sales tax collected (with the exception of certain free donations) but the loss of any Sales tax deductible in this respect. The use of the sales tax calculator is important there.

As for the supply of goods without consideration, it gives rise to taxation as delivery to oneself if it concerns the delivery of goods other than fixed assets that taxable persons make to themselves for their own needs personal property or, in other cases, results in loss of the right to deduct the goods given without consideration.

Of course, quantity discounts granted to customers as part of the company’s commercial policy do not, in principle, constitute delivery without consideration.

It is also the characteristic of taxation of a case which means that when the invoiced price does not mention the amount of Sales tax separately, we consider the invoiced amount including Sales tax for the determination of the Sales tax collected according to the formula:

(Invoiced amount x Sales tax rate) / (100 + Sales tax rate)

The same rule applies to the determination of the Sales tax collected during an adjustment due to the fact that a product liable to Sales tax has not actually been submitted by the audited company.

  • On the other hand, onerous character is not required for the taxation of imports.
  • The imposition of certain deliveries to oneself instituted by the Sales tax code constitutes another derogation from the onerous nature of the operation. The taxation of such self-deliveries, transactions without financial compensation, aims to ensure the neutrality of Sales tax.
  • Likewise, the alcohol regime subjects losses which exceed the tolerance threshold to Sales tax, even if they are fortuitous and do not involve any compensation.

Sales tax, a conceptually neutral tax

Paragraph 2 of article 1 of the Sales tax code announces the principle of the neutrality of Sales tax by providing:

Sales tax applies regardless of:

The legal status of the people involved in carrying out taxable transactions or their situation with regard to all other taxes. This is the form or nature of their intervention and the habitual or occasional nature thereof. The principle of neutrality applies to circuits, people and products.


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