Other news for february 2022

Fixed cost aid

Companies belonging to the sectors most affected by the health restrictions measures taken due to the rebound of the epidemic (mainly restaurants, hotels, events, and tourism) will be able to benefit from the “fixed cost aid” scheme for the months of December 2021 and/or January 2022 if they have lost more than 50% of their turnover compared to the same month of 2019. This aid compensates for 90% of the gross operating losses (70% for companies with more than fifty employees) suffered by the companies concerned.

VAT payable on instalments for the supply of goods

To comply with European law, the Finance Act for 2022 brings forward the date of the payment of VAT, in the event of payment of a deposit. This applies as of January 1, 2023. In other words, VAT on supplies of goods will always be payable when the transaction is conducted, except when a deposit is paid in advance. In this case, VAT will be payable as soon as this deposit is paid, up to the amount collected.

Gifts and vouchers to employees

In theory, gifts and vouchers allocated to employees by the social and economic committee or, in the absence of a committee, by the employer, are subject to social contributions, i.e., the CSG (General Social Contribution) and the CRDS (Contribution for the repayment of the social debt). In practice, however, the URSSAF (Union for the Recovery of Social Security Contributions and Family Allowances) shows tolerance. Gifts and vouchers are thus exempt from social security contributions: the total amount allocated to each employee in the same calendar year does not exceed 5% of the monthly Social Security ceiling. A limit that rises for 2022 to €171.

Subsidized loans and repayable advances

To support the cash flow of companies weakened by the Covid-19 health crisis and which have not found sufficient financing solutions from their bank or a private financier, the public authorities set up, in June 2020, an aid scheme in the form of repayable advances and loans at subsidized rates. The aid is intended to finance their investment or working capital needs. Initially open until December 31, 2020, this scheme was first extended until June 30, 2021, and a second time, until December 31, 2021. Given the context of health crisis, it is extended again, this time until June 30, 2022.