A turnover is something that is rather complicated and is not something that most of us are aware of. Having a company with large annual revenues is the dream of every self-employed person. But between us, company or not, who wouldn’t dream of being a multi-billionaire and say one day, “I offer a million dollars” in a casino as Bernard Blier did in the movie Les Barbouzes in 1964. However, all legal activities must be declared to the State to not only contribute to the evolution of the country but also to benefit from several social aids.
What are the steps to follow?
When you open your business for the first time, it is your duty to estimate your turnover and then declare it. This step is crucial because it allows you to calculate the taxes and contributions to be paid for your start-up. First, you will have to choose the payment period of your installments.
We have the choice between a monthly declaration and a quarterly declaration: the monthly declaration, as its name indicates, is made every end of the month; the quarterly declaration, on the other hand, is made every 3 months, that is to say, January, April, July, and October. For any change of dates, it is advisable to file a request to the CFE before October 31. The change is effective the following year.
Nevertheless, if it is your first declaration and you do not know what to do, the competent administration will give you 3 months to position your turnover. After that, you will have to follow the previous instructions to declare your income. On the other hand, when you have to announce your sales prices, do not forget to mention the VAT.
In case your company leaves the basic VAT exemption, you will be obliged to declare your new VAT. And finally, each entrepreneur must formalize his or her entrepreneurial activity and formalities online on the official URSSAF auto-entrepreneur portal or the URSSAF mobile application by creating and accessing their account.
Why contribute to this obligation?
Why is it important to declare your activity? As mentioned in the article’s first lines, this action contributes to the country’s evolution and provides security for your business. On the turnover you declared, will be deducted the taxes to be paid for your company. But don’t worry; usually, they are deducted from the VAT. For each thing purchased, there is a small amount to be paid to the State in its purchase price.
That’s why there is a price
However, we sometimes wonder where all this money goes when it arrives in the State’s coffers. There are 4 reasons why any country would need money: education, defense, business, aid. As this quote points out: “The greatest wealth of mankind is knowledge, which can save it, as well as destroy it”; education is very important for a country. Approximately 200 million young people between the ages of 14 and 25 in the world have not been able to complete their primary education.
How do you think these young people will be able to contribute to the development of their countries if they don’t even have the minimum knowledge to develop themselves? Then we have the modern-day vigilantes, the forces of law and order, and social security. All these statements are used to pay the salaries of these people, law enforcement officers, nurses, doctors, firefighters, lawyers, judges, etc.
Then we have the funding given by the State for those wishing to create or save their companies in order to contribute in turn to taxes. And finally, a sum to be paid for the poor, the homeless, the refugees, and all those who need some kind of financial help.
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