– DAGTVA truth table –
DAGTVA® – Scope of the taxation system
|No.||Problems exposed, requests, constraints and subjects||Origin||Pg||Li||Ref.|
|14||Sector excluded (Financial Services)||Pillar 1||7||29||CASex|
Quote : Further discussion should also take place to consider whether other sectors (e.g. financial services) should also be carved out (CASex), taking into account the tax policy rationale as well as other practicalities.
With DAGTVA, everything that is invoiced to a third party accountant is de facto subject to a digital declaration of this invoice, so that the third party purchaser of the product or service can, for his part, also makes this declaration of invoiced purchase, and this, in order to minimize its taxable income when it is a business subject to taxation on profits.
In fact in a transaction B²B in the VAT environment but also to protect the environment of the Wayfair Sale Tax following a decision 17-494 Wayfair Inc. by the US Supreme Court, the buyer will want to reclaim VAT, or some other tax on his purchases which may be services. He will systematically make its digital declaration of the corresponding invoice to force the seller or provider of financial services to make his own. Here we see the obligation to declare financial services subject to remuneration.
As a result, no sector of the economy escapes the digital declaration of invoices.
NOTE: In the first version of DAGTVA not applied today, the banking system requested that an « AFE – Autorisation Fiscale d’Extraction » , a tax clearance (of the tax included in the payment), produced by the tax authorities to accept to credit or debit the bank account in the two sides of the transaction (seller-buyer). The aim was to provide the banking system with the amount of tax it needed to separate from the total payment. The banking system returned taxes inside the payment to tax authorities and affected the balance by a net amount to the seller. This split payment was made by the banking system against remuneration to the tax authorities, a percentage of what was credited to the Public Treasury. It was a way for the banking system to agree to earn money on all banking transactions in return for the work done in collecting taxes and fighting tax evasion.
As we see in the slide show with reference to the new version of DAGTVA, in this page , the tax authorities no longer need the banking system which is no longer modified in its currently applied processes.