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I am a jewelry creator or designer under my own brand and I outsource their manufacture: am I liable for the HBJOAT tax?

Short answer

Yes, In principle.

When you design jewelry and have it manufactured by a third party to market under your own brand, you are considered a person involved in its manufacture, even if you do not physically manufacture it.

You are therefore liable for the HBJOAT tax on the taxable pre-tax turnover generated from the sale of these jewels.

Why is the creator subjected even without creating anything himself?

Article L. 471-23 of the French Tax Code on Goods and Services considers a company established in France that meets at least one of the following conditions to be participating in the manufacturing process:

  • she has the product manufactured by a third party and supplies the raw materials; ;
  • it prescribes the plans, drawings, models, techniques, specifications or dimensions of the product; ;
  • It affixes or has affixed to the product a trademark of which it has the right or exclusive use.

These conditions are not cumulative.

A creator who designs his models or markets products under his own brand can therefore be subject to it, regardless of where the physical manufacturing takes place.

Is the subcontracting workshop also liable?

It depends on the nature of the operation carried out by the workshop.

When a workshop only invoices for manufacturing or processing services on behalf of the designer, these services are not subject to the HBJOAT tax. Article L. 471-35 specifically excludes services related to watchmaking, jewelry, goldsmithing, and tableware products.

However, if the workshop manufactures the jewelry and then sells it to the designer, transferring ownership of the finished products, it is making a delivery in its capacity as a manufacturer. This sale may then be subject to the HBJOAT tax.

It is therefore incorrect to claim that the creator is always solely liable. The treatment depends on the subcontracting agreement, the ownership of the materials, and how the workshop invoices for the work.

Distribution to resellers: who pays the tax?

When the designer sells their jewelry to a retailer:

  • the creator or client is liable on their sale to the reseller, as they are considered to be involved in the manufacturing; ;
  • The reseller is then liable for payment on their sale to the end consumer.

There is no mechanism allowing the reseller to deduct the tax already paid upstream.

On the other hand, a company that buys and then resells the products as is to another professional, without having participated in their manufacture, carries out a trading or wholesale operation which is not subject to tax.

Calculation basis and declaration

The tax is calculated at a rate of 0.19 % on the turnover excluding tax corresponding to the taxable operations and products.

The declaration and payment are made on the website teletaxe.fr. Depending on the amount of tax due, the declaration may be monthly, quarterly or annually.

Official sources

  • Article L. 471-22 of the Code of Taxes on Goods and Services
  • Article L. 471-23 of the Code of Taxes on Goods and Services
  • Article L. 471-35 of the Code of Taxes on Goods and Services
  • Francéclat and télétaxe.fr: official presentation of the HBJOAT tax
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