Box F6 of the French VAT return: Important points to keep in mind

General presentation of box F6

Box F6 is used to report The amount excluding tax Of purchases made without VAT, in application of a duty-free purchasing quota (article 275 of the French tax code). This means that the company has been authorized by the tax authority to do Invoice without VAT certain purchases of goods, within a very specific framework.

Details of the transactions concerned

The duty-free purchasing quota mechanism

This device allows a company, especially if it carries out intra-Community deliveries or Exports, to buy certain goods without VAT, subject to administrative authorization. The aim: to avoid the formation of structural VAT credits.

Indeed, if a company invoices for export (excluding tax) but buys its goods including VAT, it automatically accumulates a VAT credit each month. The Franchise purchasing quota Allows you not to Not subject to VAT upon purchase, which improves the treasury of the company and reduces dependence on VAT refunds.

Examples of operations concerned

Take the case of a company A that sells goods to a company B, both established in France. If Company B benefits from a duty-free purchasing quota, it can ask Company A to charge it without VAT. The Excl. VAT of this operation is then reported in box F6 of the VAT return.

Not to be confused

It is not necessary Not to be confused this mechanism with the Exemption based on VAT, which applies to small businesses under a certain turnover threshold (around €25,000).
La Franchise in base Exempt the entrepreneur To bill VAT; it has nothing to do with Franchise purchasing quota, which allows a company tobuy without VAT.

The expert's point of view

Conditions for access to the duty-free purchasing quota

To benefit from the quota, three conditions must be met:

1. Be subject to VAT.
2. Carry out intra-community deliveries or exports.
3. Have obtained authorization of the tax administration. This authorization, limited in time and in amount, is formalized by a document that the company must provide to its suppliers to be invoiced excluding VAT.

A cash management tool

The quota is particularly useful in industrial or logistics sectors that have significant international flows. He Avoid paying VAT at the time of purchase, and eliminates the need to request a refund with the tax authorities, which may take several weeks.

Example: A company buys goods worth €95,000 excluding VAT as part of its quota. This amount is reported in box F6, with no other declarative consequences. There is no amount to be donated or collected.

Important points to keep in mind

• Do not confuse it with the VAT-based franchise.
• Only declare purchases invoiced excluding VAT as part of a quota obtained from the tax authorities (article 275 of the CGI).
• Use this mechanism as a priority for domestic purchases : although the quota can theoretically apply to intra-Community imports or acquisitions, it has little interest since the generalization of reverse charge.
• Check the eligibility of your company : if you carry out the flow of goods from France to the EU or third countries, this mechanism is relevant.
• Report only the amount excluding tax of operations in the Box F6, without generating VAT collection or deduction.

Conclusion

Box F6 of the CA3 VAT return only concerns one very specific case: purchases made free of VAT upon authorization from the administration, as part of the Franchise purchasing quota. This mechanism is a powerful tool for optimizing cash flow for internationally oriented companies.

If you are a company that exports or makes intra-Community deliveries, Remember to ask for this quota. It will allow you to avoid carrying VAT at the time of purchase, and therefore to lighten your cash flow.

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