Commercial area tax (Tascom)
Verified 27 May 2024 - Legal and Administrative Information Directorate (Prime Minister), Ministry of Finance
The Commercial Area Tax (Tascom) is payable by any company that operates a retail business of more than 400 m² and whose annual turnover before tax is at least equal to €460,000. Only establishments open since 1er January 1960 are submitted to Tascom.
Tascom is only applicable to companies with retail trade open as of 1er january 1960.
Retail trade activity
Retail business consists of sell of goods in good condition where they are purchased (or with minor modifications) to private individuals. Examples include the sale of clothing, food products and motor vehicles.
A store that performs at least half of its total turnover through the sale of goods to individuals is a retail business.
Sales of products which are prepared and/or assembled are considered to be retail sales: e.g. sliced cheese or sliced deli meats, bouquets, etc.
On the other hand, sales of products transformed shall not be regarded as retail sales. For example, meat processing into marinated minced meat or dishes cooked, made and prepared on site are not retail sales.
The activity of providing services (hairdresser, garage, restaurant, cafe, etc.) is not subject to Tascom.
Likewise, wholesale trade who purchase goods in significant quantities for sale to retailers, professional users or collectivities are not subject to tax.
Legal form of the company
All companies retail sales individual business are subject to Tascom irrespective of the legal form:
Only stores in retail trade of which the sales area exceeds 400 m² are subject to Tascom.
Sales area means enclosed and covered spaces for the following purposes:
- Circulation of customers to make purchases
- Exhibition of the goods offered for sale, upon payment
- Movement of personnel to present goods for sale.
However, the following elements are not included in the calculation of the taxable area:
- Storage, production or service areas closed to the public
- Outdoor sales areas outside the store
Example :
A food sales establishment consists of a sales area of 300 m² and a storage area of 200 m². Only the 300 m² of sales area are taken into account to appreciate the threshold of 400 m². Therefore, Tascom is not due in this case.
Specific rules apply to headend companies, i.e. which directly or indirectly control establishments under the same brand name. Where the combined sales area of these establishments exceeds 4 000 m2, they are subject to Tascom even if their sales area taken individually is less than 400 m².
FYI
Where, on the same site or within a commercial complex, the establishment also has a retail activity of fuel, the sales area to be taken into account is increased by 70 m² by refueling position (number of fuel pumps corresponding to the number of vehicles that can be supplied simultaneously).
Only the turnover of the retail sale of goods shall be taken into account.
Wholesale establishments which carry out incidentally retail sales are subject to Tascom on that activity alone where those sales are at least equal to €460,000 and are accounted for in separate accounts. The different activities (wholesale and retail) should therefore be the subject of separate accounts.
Tascom is due when the annual turnover excluding taxes (CAHT) at the December 31 of the year preceding the taxation year is greater than €460,000.
Example :
One retail establishment operated between 1er January and 1er october 2023 a sales area of 750 m². From 1er october 2023, the sales area is expanded to 900 m². It is the area at 31 December 2023 (900 m²) that is taken into account for the calculation of the Tascom due in 2024.
Where the establishment has not been operated during the whole year, the turnover must be ‘annualized’ in order to assess the €460,000. Several situations are possible: opening during the year, temporary closure, permanent cessation, change of operator.
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Opening during the year
The turnover is calculated in proportion to the opening time of the establishment. The following formula must be applied:
(realized turnover x 365 days) / number of days between the opening date and 31 December of the year
Example :
A business that opened on the 1er september achieved a turnover of €50,000.
(€50,000 x 365) / 121 (number of operating days in the year) = €150,826
Tascom is not due because the annualized turnover is less than €460,000.
Exceptional temporary closure
This situation concerns, for example, a temporary closure for works or an administrative closure.
The turnover is calculated in proportion to the opening time of the establishment. The following formula must be applied:
(realized revenue x 365 days) / number of opening days
Termination
When a company permanently ceases its activity, it must pay Tascom for the period from 1er January until the date of cessation.
Turnover is annualized to assess the threshold of €460,000as follows:
(Revenue realized in the last year of operation x 365 days) /number of opening days.
Example :
A business which ceased trading on 30 June 2023 had a turnover of €200,000.
€200,000 x 365 / 151 (number of opening days)= €483,444
Tascom is due because the annualized turnover is greater than €460,000.
Change of operator
In the event of a change of operator, the tax shall be payable by the former operator for the period between 1er January and the day of the transfer and by the new operator for the period from the reopening and 31 December.
Turnover is calculated in the 2 cases using the following formula:
(realized revenue x 365 days) / number of opening days
FYI
In the event of the acquisition or merger of companies, the acquiring company or the new company must pay the levy.
1. Determine turnover per m2
To determine revenue per m2However, the turnover of the establishment must be divided by the sales area. This is the area existing either on 31 December of the year preceding taxation or on the last day of operation in the event of cessation of activity.
Example :
In 2023, the turnover of a food distribution establishment is €8 000 000. The surface of this establishment is 1,000 m².
The turnover per m2 is = €8 000 000/1000 m²= €8,000
2. Apply the Tascom rate
Once the turnover per m2 established, the corresponding Tascom rate shall be applied.
A special tariff applies in the following situations:
- The facility has a fuel retail operation.
- The establishment directly or indirectly controls a retail fuel distribution facility.
- The establishment and a retail fuel distribution facility shall be controlled directly or indirectly by the same person.
This special rate does not apply where the establishment has a principal activity in the sale or repair of motor vehicles.
Annual HVAC per m2 | General tariff | Special price (fuel sale) |
|---|---|---|
Up to €2,999 | €5.74per m2 | €8.32 per m² |
Enter €3,000 and €12,000 | [(annual AC/area in m2 - 3000) x 0.00315] + €5.74 per m² | [(annual AC/area in m2 - 3000) x 0.00304] + €8.32 per m² |
From €12,001 | €34.12 per m2 | €35.70 per m2 |
The tax authorities shall make available simulators for to assess the amount of tax to be paid according to whether the company is in operation or has ceased its operation.
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active company
Termination of activity
The amount of the tax is increased according to the size of the establishment:
- If the establishment is more than 5,000 m² and has a turnover of more than €3,000 per m², the increase is 30%
- If the establishment is more than 2,500 m², the increase is 50%
Please note
Local authorities (municipality or EPCI: titleContent) have the possibility of modulating the amount of the Tascom by applying a multiplier between 0,8 and 1,2.
The tax amount is reduced in the following situations:
- Reduction of 30% applicable to establishments selling principally (i.e. for more than half of total turnover) in the subsequent goods :
- Furniture (household appliances, light fixtures, home decorative/ornamental goods, furniture, Hi-Fi equipment, household linen and tableware)
- Automobiles
- Agricultural machinery
- Building materials
- Flowers, plants, seeds, fertilizers, plant protection products, pets and feedingstuffs
- Reduction of 20% when the surface intended for retail less than 600 m², with a turnover of less than or equal to €3,800 per m²
- Reduction of an amount by €1,500 for an establishment situated within priority districts of city policy (QPV)
The first 2 tax reductions can be cumulated. The reduction can therefore be 20%, 30% or 50%.
Please note
Local authorities (municipality or EPCI: titleContent) have the possibility of modulating the amount of the Tascom by applying a multiplier between 0,8 and 1,2.
Tascom must be declared and paid at different times depending on whether the company is in operation or has ceased operations.
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Operating in progress
Only companies operating an establishment subject to tax are required to file a return.
To declare Tascom, you must complete for each establishment Form 3350-SD and send it before 15 June with the company Tax Service (SIE) on which the establishment depends.
Declaration for the commercial area tax (Tascom)
Who shall I contact
The declaration shall be obligatorily accompanied by payment. It may be made in cash, by transfer or by check made payable to the public treasury.
If the company paid Tascom the previous year, the tax administration sends it directly in May the form No. 3350-SD.
Warning
The company who is submissive to the increase of 50% where the sales area of an establishment exceeds 2 500 m2 must also pay a down payment of 50% of the amount of the tax before 15 June.
This deposit concerns the total amount of the tax (tax due + surcharge).
Therefore, in 2023, it must report and pay the tax and the surcharge by June 15, 2023. 50% for 2023 and the advance on the tax and on the increase for 2024.
Termination of activity
To declare Tascom, you must complete for each establishment Form No 3350-C- SD.
Declaration for the commercial area tax (Tascom): cessation of operations in 2024
This form must be sent before 15 of 6e month after cessation of activity with the company Tax Service (SIE) on which the company depends. The declaration must be accompanied by payment.
Who shall I contact
Example :
A business that ceased its activity on March 31 must declare and pay the tax before September 15.
Who can help me?
The public service accompanying companies
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