How do you calculate your CNAPS tax?
The CNAPS tax has disappeared. Here's the update on this tax, the rules that defined it and software tips that are still relevant, whatever taxes you need to take into account in your invoicing 😉
Update 2021: CNAPS tax repealed
⚠️. As of 1 January 2020, the private security tax has been repealed.
▶️ Independent security guards, security and surveillance companies and all other private security activities no longer have to charge and pay the CNAPS tax.
What is the CNAPS tax? Definition
This tax was created to serve as a source of funding for the Conseil National des Activités Privées de Sécurité (CNAPS). This is a public body whose role is to regulate private security activities. As such, the CNAPS tax was a sector-specific contribution.
Activities covered by the CNAPS tax
The tax applied to structures governed by the law of 12 July 1983, whether legal entities or individuals, whose activities involved the surveillance, guarding, transport or physical protection of individuals.
Fire safety and personal assistance services (SSIAP) were excluded.
In addition, organisations employing security guards, building or shop security guards, dog handlers or airport security guards as part of their services had to pay the CNAPS tax.
Payment of the CNAPS tax: same timetable as for VAT
If you are liable for VAT, you have to pay the CNAPS tax in the same way as you pay VAT. Thus, if you paid your VAT monthly, the CNAPS tax was paid monthly. If your VAT was quarterly or annual, the CNAPS tax was also quarterly or annual.
What is the procedure for declaring the CNAPS tax?
The CNAPS contribution had to be declared and paid at the same time as the VAT.
It was done by means of a schedule (form 3310 A), associated with your tax return (form 3310 - CA3 if you were on a monthly basis, form 3517-S-CA12 if you were on the simplified system: annualised).
If you were subject to the actual tax regime, you had to file your return online.
How was the CNAPS tax applied?
The structures liable for the contribution were :
- companies in France responsible for providing private security services in-house: in-house security services for shops, etc. ;
- external service providers acting in France on behalf of clients.
How is the CNAPS tax calculated? Accounting
How do you pass on the tax to your private security business?
- If you deployed the tax internally, the remuneration paid to the employees concerned was used as the reference point. At the time, the CNAPS tax was 0.6%. Everything had to be taken into account in the remuneration: salary, bonuses, benefits in kind, holiday pay, etc.
- If you were working on behalf of a client, the tax was applied to your turnover excluding VAT. This was 0.4% and was subject to VAT (value added tax).
So, to sum up, the CNAPS rate was :
- 0.40% on the amount excluding tax of services for individuals ;
- 0.60% on the remuneration paid to employees performing security services on behalf of legal entities.
Invoicing the CNAPS tax
How do you include the CNAPS tax in your invoices? If your entire service concerned private security, the contribution could be applied at the end of the invoice, on the total amount excluding VAT. You would then apply VAT to this amount, and obtain the total amount including VAT. This was equivalent to applying the following formula:
(Amount excluding VAT + CNAPS tax) + VAT = Amount including VAT
If some of your services were security-related and others were not, you had to separate the items and apply the CNAPS tax calculation on a case-by-case basis.
Which accounting software should I use?
You have a number of options for issuing your invoices.
There is, of course, Excel, which you can use to create a template. However, you will not need to make any prior settings to be able to correctly apply the various taxes to their respective bases.
The benefits of SaaS mode
Various invoicing tools are available to make your job easier. Factomos and Zervant are Software as a Service (SaaS) applications. You can access them at any time and from any device (computer, tablet, smartphone).
Tools for managing your tax and accounting
What's in it for you? They are user-friendly enough to save you time in carrying out your administrative tasks (payroll, taxation, invoicing, exemptions, etc.). They are also easy to use and easy to learn.
Up to date with the latest regulations in force, SaaS software can help you bring your operational processes into line.
So whether you're calculating VAT or applying the CNAPS tax, you can be sure of avoiding any oversights or miscalculations.
The operational benefit is matched by a valuable analytical aspect. The software can provide a cross-sectional or summary view of the accumulated amounts of a given type of tax paid, or a report over a given period.
Various software solutions are available to guide you and simplify your day-to-day work.
Article translated from French