New Caledonia introduces Consumption Tax
- Feb 1, 2017 | Richard Asquith
The Pacific French territory of New Caledonia is to introduce a General Tax on Consumption (TGC).
It follows the principles of VAT, including the ability for businesses to recover an input TGC through the production chain. Final implementation date will be 1 July 2018 – although there will be a limited trial period from 1 July 2017. There will be a registration threshold of CFP 25m and CFP 7.5m for goods and services, respectively.
The TGC rates will likely be: 22%; 11%; and 3%. TGC replaces the existing import tax and service tax.
Need a fiscal representative in France?
Non-EU businesses selling in France will need to appoint a fiscal representative alongside completing VAT registration and returns.
Fiscal representatives are responsible for the accurate VAT submissions of their non-EU clients.
Avalara offers a Fiscal Representative Service as part of its international VAT and GST Registration and Returns Service.
Need help with your French VAT compliance?
Researching French VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade.