(Article 87 of the 2016 Finance Act)

The collaborative economy that allows individuals to exchange with other individuals goods (a car, a home, a mower etc.) or services (car sharing, DIY, cooking classes etc.), by sale or rental via an Internet platform, provides for most individuals additional income which is modest but, for some of them, can be a real activity that is regarded as commercial.

In theory, individual incomes on Internet platforms are subject to tax under ordinary conditions. In practice, things are quite different: income is rarely reported, rarely controlled, and rarely imposed.

This is why legislature intended to clarify these situations, by implementing measures of specific information, mandatory for these platforms, relating to their users who are tax residents of France or who perform sales or services in France ; compliance with these measures being under control of the tax authorities.

  1. "Collaborative" platform will be obliged to inform their users about their fiscal and social obligations (new Article 242 bis of the FTC and Article L 114-19 of the New Social Security Code) : thus, companies, whatever their place of establishment is, which remotely link users, electronically, in order to perform sales of goods or service, exchange or sharing of goods, are required to provide, for each transaction, a fair, clear and transparent information on tax and social obligations of people who carry out business transactions through them.

They are also required to provide an electronic link to the websites of the tax authorities in order to comply with these obligations.

  1. These platforms also have the obligation to send users, in January of each year, a document summarizing the gross amount of transactions they know about, and that they have received through them during the previous year.
  2. These platforms will have to get certified annually by an independent third party, the respect of the information requirements described above, for the previous year .
  3. The Tax Administration will monitor compliance with these obligations (new Article L 102 AD of the Tax Procedure Handbook) : these platforms will communicate electronically to the tax authorities each year before March 15, the certificate mentioned above. Failure of such a communication will be sanctioned by a fine of € 10,000 (new Article 1731 of the FTC).

This new system will apply to transactions occurring on or after July 1st, 2016. In practice, platforms mentioned above must therefore obtain their certificate and forward it to the Tax Administration before March 15, 2017.