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	<title>VAT &#8211; The Language Network</title>
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	<title>VAT &#8211; The Language Network</title>
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		<title>Common Non-Conformities Identified in Training Organizations and How to Ensure Compliance</title>
		<link>https://thelanguagenetwork.online/common-non-conformities-identified-in-training-organizations-and-how-to-ensure-compliance/</link>
					<comments>https://thelanguagenetwork.online/common-non-conformities-identified-in-training-organizations-and-how-to-ensure-compliance/#comments</comments>
		
		<dc:creator><![CDATA[Ian BAILEY]]></dc:creator>
		<pubDate>Wed, 19 Feb 2025 08:29:39 +0000</pubDate>
				<category><![CDATA[Accounting & Invoicing]]></category>
		<category><![CDATA[Admin & Legal]]></category>
		<category><![CDATA[Communication]]></category>
		<category><![CDATA[Training]]></category>
		<category><![CDATA[VAT]]></category>
		<guid isPermaLink="false">https://thelanguagenetwork.online/?p=1144</guid>

					<description><![CDATA[Audits of training organisations are carried out on the basis of documents or on site, by 145 agents spread across the 18 regional audit services (SRC /DREETS). Non-compliance may lead to sanctions imposed by the regional prefect or the minister, based on reports and observations.Below are the most common non-conformities identified in the latest report, along with solutions to ensure compliance. 1. Non-compliant advertising (21%) Issue:Training organizations must adhere to strict rules regarding communication and advertising. This includes:• Avoiding misleading claims about qualifications, certifications, or accreditations.• Including required legal information (e.g., registration number, Qualiopi certification if applicable).• Avoiding misleading promises (e.g., guaranteeing full financial support when conditions apply). How to ensure compliance:• Check that your communication materials (website, brochures, social media) include your registration number (N.D.A.: Numéro de Déclaration d’Activité) and relevant certifications.• Whenever you quote your N.D.A. in any communication, make sure that it includes the indication: “Cet enregistrement ne vaut pas agrément de l’État” (This registration does not imply State approval).• Be precise and factual when describing your training programs.• Add a disclaimer stating that financial support from funding bodies (OPCO, Pôle emploi) is subject to eligibility criteria. 2. Lack of separate accounting (18%) Issue:Training organizations must keep their financial records separate from other business activities. How to ensure compliance:• Open a dedicated bank account for your training activity.• Use accounting software that allows you to track income and expenses separately for each activity.• Ensure that invoices and quotes for training services specify the legal framework for VAT exemption.For example, if you are certified (by the DREETS, or previously DIRECCTE) exempt from VAT for your professional training activities, then all invoices for these VAT-exempt activities should include the following statement: “exonérée de TVA — Art. 261.4.4 a du CGI.”If the invoice is for an activity other than for your VAT-exempt activity (for example, for translation work), and if this ‘extra’ activity does not exceed the threshold in turnover for application of VAT, then your invoices for this activity should include the following statement: “TVA non applicable selon l&#8217;article 293B du CGI.” 3. Failure to deliver planned training actions (17%) Issue:Not delivering a planned training session or failing to adhere to its content is a major cause of non-compliance. How to ensure compliance:• Create a detailed syllabus and schedule for each training program.• Maintain attendance sheets signed by participants.• Archive training materials and certificates of completion.• If a session is cancelled, promptly notify participants and provide alternative solutions (rescheduling, refunds, etc.) 4. Absence or non-compliance of internal regulations (13%) Issue:The ‘règlement intérieur’, or ‘internal regulations’, are mandatory for training programs exceeding 500 hours per year. How to ensure compliance:• Draft internal regulations that outline:• General operating conditions.• Rights and responsibilities of trainees.• Safety and disciplinary rules.• Ensure trainees sign the regulations before starting the training. 5. Irregularities in the nature of services provided (5%) Issue:Training services must align with the legally defined categories (e.g., vocational training, skills assessments, validation of prior experience, apprenticeships). How to ensure compliance:• Verify that your programs fit within the legal framework for training services.• If offering coaching, ensure it is integrated into a structured training program with clear learning objectives. 6. Insufficient information for trainees (5%) Issue:Trainees must receive clear and complete information about the training program, including objectives, content, and conditions. How to ensure compliance:• Provide a detailed syllabus before enrolment.• Clearly state prerequisites and learning objectives.• Supply a welcome booklet outlining the training process. 7. Non-compliance with individual training contracts (4%) Issue:Any training commitment must be formalized through a contract or agreement. How to ensure compliance:Always issue a training contract specifying:• The nature and duration of the training.• Cost and funding arrangements.• Responsibilities of both trainer and trainee. How to Conduct a Compliance Review 1. Review your administrative documents• Ensure your registration number is valid.• Verify the existence and compliance of your internal regulations.• Update contract and agreement templates. 2. Check your accounting obligations• Maintain separate financial records for training activities.• Justify VAT exemption where applicable. 3. Assess your communication practices• Ensure your advertising complies with legal requirements.• Provide transparent information on training courses. 4. Evaluate your training procedures• Ensure each training program has a structured syllabus.• Keep records of attendance, training materials, and completion certificates. 5. Ensure traceability of your actions• Retain essential documents (contracts, agreements, proof of attendance, etc.) Developing Your Compliance Roadmap What&#8217;s at stake? Ensuring compliance with the regulatory framework governing training organizations in France is crucial to avoid significant legal and financial penalties. Below is an overview of potential sanctions associated with each of the previously discussed non-conformities: 1. Non-compliant Advertising Potential Sanctions: Financial Penalties: A fine of up to €4,500. Criminal Penalties: Up to one year of imprisonment. Operational Restrictions: Possible temporary or permanent prohibition from managing a training organization. Legal References: Articles L.6355-16, L.6355-17, and L.6355-23 of the French Labour Code. 2. Absence of Separate Accounting Potential Sanctions: Financial Penalties: A fine of up to €4,500. Operational Restrictions: Potential temporary or permanent ban from directing a training organization. Legal References: Articles L.6355-10 to L.6355-14 of the French Labour Code. 3. Failure to Execute Planned Training Actions Potential Sanctions: Financial Repercussions: Obligation to reimburse unduly received funds for services not rendered. Operational Restrictions: Possible annulment of the activity declaration, leading to a prohibition from offering training services. Legal References: Articles L.6354-1 and L.6351-4 of the French Labour Code. 4. Absence or Non-compliance of Internal Regulations Potential Sanctions: Financial Penalties: A fine of up to €4,500. Operational Restrictions: Potential temporary or permanent prohibition from managing a training organization. Legal References: Articles L.6355-8, L.6355-9, and L.6355-23 of the French Labour Code. 5. Irregularities in the Nature of Services Provided Potential Sanctions: Operational Restrictions: Annulment of the activity declaration if services do not align with legally defined training actions, leading to a ban on providing training services. Legal Reference: Article L.6351-4 of the French Labour Code. 6. Insufficient Information to Trainees Potential Sanctions: Financial Penalties: A fine of up to €4,500. Operational Restrictions: Possible temporary or permanent prohibition]]></description>
		
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		<title>The reduction in VAT exemptions voted in the 2025 budget today will penalise hundreds of thousands of micro-entrepreneurs &#8211; but as independent trainers, you are not necessarily amongst them</title>
		<link>https://thelanguagenetwork.online/vat-exemptios/</link>
					<comments>https://thelanguagenetwork.online/vat-exemptios/#respond</comments>
		
		<dc:creator><![CDATA[Ian BAILEY]]></dc:creator>
		<pubDate>Thu, 06 Feb 2025 21:22:43 +0000</pubDate>
				<category><![CDATA[Accounting & Invoicing]]></category>
		<category><![CDATA[Admin & Legal]]></category>
		<category><![CDATA[Training]]></category>
		<category><![CDATA[VAT]]></category>
		<guid isPermaLink="false">https://thelanguagenetwork.online/?p=1128</guid>

					<description><![CDATA[Please note an important update to this article as of 10th February 2025: This measure, which is normally scheduled to apply from 1st March 2025, has been suspended for the time being.In response to the concerns of professionals, the government is opening discussions with relevant parties to clarify the implementation of this measure.Please note: the finance bill is the subject of an appeal before the Constitutional Council.Therefore, there could be changes before it is promulgated by the President of the Republic. To be continued… Please join the discussion in our fluent Community here. At tonight’s pre-AGM meeting of the Language Network, members learned that the Senate had today overwhelmingly adopted the Finance Bill, which was the subject of an agreement between MPs and Senators. Following the use of the 49.3 vote in the French National Assembly, this vote by the Senate means that the budget can now be definitively adopted by Parliament, a month and a half late.But the item that sent a wind of panic through the meeting was that from March 1st this year, the VAT exemption threshold will be lowered to €25,000 annual turnover, compared with the current €37,500, which will radically change the situation for hundreds of thousands of micro-entrepreneurs.However, this doesn’t necessarily affect us independent trainers. This represents a significant reduction in the exemption for micro-entrepreneurs – previously known as auto-entrepreneurs – who until now have benefited from an exemption up to an annual turnover of €37,500 for services and €85,000 for commercial activities (purchase/sale of goods).With this new threshold lowered to €25,000, the micro-entrepreneurs concerned will now have to charge VAT to their customers, making their services 20% more expensive, before passing it on to the State. However, most training and teaching services are still exempt from VAT. This applies in particular to school and university teaching, continuing vocational training (subject to certain conditions) and private tuition and lessons. The following activities may be exempt from VAT if certain conditions are met: School, university, technical, vocational, agricultural and distance educationContinuing vocational training provided by a public institution or a company holding a certificate issued by the competent administrative authorityPrivate courses or lessons given by individual entrepreneurs paid for directly by the students.Continuing vocational trainingContinuing vocational training may be provided by a public body or a private body.The rules for obtaining VAT exemption are different when the training is provided by a private company or an approved skills provider.Training provided by a private company can be exempt from VAT if it has a certificate.Private companies wishing to be exempt from VAT must apply for a certificate using form 3511-SD. The company must complete 4 copies and send 3 of them by registered post with acknowledgement of receipt to the Regional Directorate for the Economy, Employment, Labour and Solidarity (DREETS) where the company’s registered office is located.DREETS has 3 months from receipt of the application to issue the certificate. If no response is received within this period, the certificate is deemed to have been issued.The DREETS must send a copy of the certificate or refusal to issue the certificate to the company and to the public finance department to which the company belongs. In the event of refusal, DREETS must state the reasons for the refusal.The company is exempt from VAT as soon as it receives the certificate.When a teacher or trainer is exempt from VAT, this means that they no longer have to collect VAT on behalf of the State. In other words, they do not charge VAT to their customers. Most independent trainers made the choice of whether they wished to be exempted or not from VAT right at the beginning, when setting up their private entreprise, and at the time of applying for their ‘numéro de déclaration d’activité&#8217;, or NDA.So if you have never charged VAT on your training courses, this is probably because you have already applied for, and received, this certificate, but it may well have been back in the day when this procedure was handled by the DIRECCTE, which on April 1st 2021 ceded to the new DREETS (or DRIEETS, for the Île de France!) When they are exempt from VAT for their training or teaching activity, teachers and trainers cannot deduct VAT on purchases made for the purposes of their activity.They lose their right to deduct.On the other hand, if the teacher or trainer invoices for services or goods that are not covered by the VAT exemption, they will have to charge VAT to their customers for these sales, but they will also be able to deduct VAT on purchases made for this part of their professional activity. For example, the following services and goods may be subject to VAT: Training services that are not related to professional trainingSales of items made by students as part of their training that are in competition with the transactions of professionals subject to VAT.This is definitely something we can discuss at our next Watchdogs meeting, under the “admin and legislation” banner.Looking forward to discussing this with you soon,ian Sources:Budget 2025 : la baisse des exemptions de TVA va pénaliser des centaines de milliers de micro-entrepreneursBudget 2025 : le texte définitivement adopté par le Parlement, après un dernier vote du SénatTaux de TVA applicables à la formation et à l’enseignement]]></description>
		
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