The HBJOAT tax: what a jeweller-watchmaker needs to know
The "HBJO tax" has a real name: the HBJOAT tax (watchmaking, jewelry, goldsmithing, and tableware). Discreet but mandatory, it applies to most jewelry and watch shops. Here's the gist, from the retailer's perspective.
- Tax HBJOAT for the benefit of Francéclat Committee, for the development of the sector.
- Those liable: the manufacturers and retailers based in France.
- Rate applied: 0,19 % of the taxable turnover excluding tax (legal range from 0.16 % to 0.20 %).
- Exempt: the’occasion (since 2009). And not recovered if the amount due is ≤ €20 per year.
What does HBJOAT mean?
Hwatchmaking, Bijouterie, Jsheepfold, Oironworks and Arts of the Table. It's a earmarked tax : its proceeds do not go to the state budget but to Francéclat Committee, which finances the development and promotion of the sector (studies, trade fairs, collective actions).
Who pays for it, on the jeweler's side?
The law targets manufacturers and retailers established in France. For you, the retailer, it focuses on your retail sales of the products concerned (the triggering event is the delivery of the product).
Are you having your products manufactured under your own brand?
Important point for brands: you are liable for the tax even if you don't make anything yourself. As soon as you Design your products and have them manufactured by an external workshop. (a manufacturer), you are considered manufacturer in the sense of the tax, and this regardless of where it was manufactured, in France as well as abroad. It's you, the contractor, You are the one who declares and pays the tax. The workshop, on the other hand, only transforms a material that does not belong to it: it is not liable for the tax on your behalf.
On which products?
Watchmaking
Watches, clocks, pendulum clocks, alarm clocks.
Jewelry store
Jewelry made of precious metals, precious stones, pearls.
Silverware & tableware
Goldsmithing, tableware, glassware, cutlery.
Good to know: the costume jewelry does not fall within the scope of retailers' taxable income. The precise list of taxable products is set by decree (decree of December 27, 2018).
How many? The calculation
The rate applied is 0,19 % of taxable pre-tax revenue (the law allows it to be set between 0.16 % and 0.20 %). This is low per unit, but calculated on your total revenue from the products concerned, and it is not not recoverable.
- Taxable new sales revenue excluding VAT: 300 000 €
- Tax due: 300,000 × 0.19 % = 570 €
What you don't pay
The opportunity
The second-hand market has been exempt since January 1, 2009.
Costume jewelry
It is off-limits for retailers.
Under €20 per year
The tax is not collected if the annual amount due is less than or equal to €20.
Do you sell second-hand watches and jewelry?
Good news: the Second-hand goods are exempt. HBJOAT tax. Since January 1, 2009, second-hand goods are exempt. Specifically, if you resell a vintage watch, Whether it's a pre-owned watch or a second-hand piece of jewelry, this sale does not fit on your plate : you do not pay tax on it.
What matters is the second-hand character of the product, not its value. Whether it's a highly sought-after vintage watch or a low-value antique piece of jewelry, as long as it's sold secondhand, it's exempt. Only your sales of new products remain taxable.
How to declare it
- Your sales : declaration and payment to the Francéclat Committee, online at teletax.fr.
- There periodicity (monthly, quarterly or annually) depends on the amount involved.
The reflex for a jewelry store
The key is to be good isolate what is taxable Separate your sales of new (taxable) goods from your sales of used (exempt) goods, and exclude costume jewelry. Software that natively distinguishes between new and used goods and categorizes your sales saves you this sorting time when filing your tax return.
New and pre-owned, clearly separated in Jewely Retail
Jewely Retail distinguishes your sales of new and used products and gives you the turnover by type, useful for your HBJOAT declaration.
Sources: article codifying the HBJOAT tax on Légifrance; Francéclat Committee (teletaxe.fr); decree of December 27, 2018. This article is for informational purposes only and does not replace the advice of your accountant. Rates and procedures may change: check with Francéclat before filing any declaration.