The Good Life France Magazine SUMMER 2016 | Page 94

Since most Mairies keep their own list of tourist accommodation in the commune it is definitely worth taking this step in person. Equally, if you choose not to join a particular label then the Mairie can direct you to the right department in order to get a directed sign post to your property put in place. Any changes to the details declared – i.e. extra beds following expansion – require a new declaration using the same form.

3.2 Registration of the activity – professional or not?

A distinct business structure is not required in order to run your Gîte, as long as your rental income is a secondary, lower income source for the household, and is below 23.000€ each year. In this case, you must register with your local Greffe du Tribunal de Commerce, using the P0i form within 15 days of the start of your first rental contract.

However, rental of your Gîte becomes a professional activity when hotel style services are offered, such as cleaning and laundry, and/or leisure services such as bike hire. A registration with the Registre du Commerce et des Sociétés (RCS) is also mandatory if the Gîte rental is your primary activity. That said, certain RCS have been known to refuse registration; in this case as long as you show the tax authorities the refusal you can still run the activity as a business.

The statute you choose has many variables, most notable your expected turnover and the services you will offer. If you feel your language skills are up to the challenge then registration of this new professional activity can be completed online via the Centre de Formalités des Entreprises website www.cfenet.cci.fr Alternatively, French Admin Solutions offers extremely competitive rates for company registrations, including a consultation to find the best structure for you and completion of the paperwork on your behalf.

VAT or TVA

In principle the rental of furnished property is exempt from VAT. So, you as the owner do not charge VAT to your tenants and you do not "recover" VAT on your expenditure related to the rental property. That said, Article 261 D-4 of the General Tax Code (CGI) indicates six categories of VAT-taxable transactions, the most pertinent being that if you supply at least three of the following services on site and in addition to the accommodation offered, then the whole transaction is subject to VAT:

breakfast; a daily cleaning service; supply of bedding; guest reception on arrival.

TIP! Although this year membership of a Centre de Gestion Agréé (CGA) has lost its previous 915€ annual tax credit accorded to cover accountancy fees, and the guarantee that tax inspection would investigate only the last two fiscal years books, it is still an option worth investigating due to the fact that members avoid the standard 25% profit uplift applied in order to calculate the tax owed.

STEP 4: FINANCES

4.1 Can you benefit from financial assistance when setting up?

If your plan is to renovate a crumbling cultural relic, with the intent of breathing new life into a flagging local economy, you could be entitled to financial support, from your Conseil Générale, local Council or even the EU. If you're not sure if you qualify, ask at your local town hall.

If you want to make changes to your property in order to make it accessible to people of reduced mobility then other aids are available to help you achieve a ‘Tourisme et Handicaps’ label tourisme-handicaps.org.