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I am a jewelry trader and I do wholesale buying and reselling: am I subject to the HBJOAT tax?

Short answer

No, when your business consists solely of buying jewelry from suppliers and then reselling it as is to other professionals.

Francéclat specifies that wholesale trade and trading, i.e. the resale of goods as is between professionals, are not subject to the HBJOAT tax.

However, this answer needs to be qualified if you import the products from a country outside the European Union, if you participate in their manufacture or if you sell them directly to individuals.

What is a trader for the purposes of the HBJOAT tax?

A trader buys jewelry, watches or other HBJOAT products from manufacturers, brands or suppliers, then resells them as is to retailers or other professionals.

To fall under the category of pure trading:

  • the sale must be carried out between professionals; ;
  • the products must be resold in their current condition; ;
  • the trader should not be considered as participating in their manufacture.

Why is trade not taxable?

The HBJOAT tax applies to certain operations defined by the Goods and Services Tax Code, such as manufacturing, importing and, for certain products, retailing.

The simple wholesale resale of products purchased and then resold as is between professionals does not constitute a taxable transaction.

The absence of taxation does not depend on the profit margin or the absence of commercial added value. It depends on the nature of the transaction.

Concrete examples

✅ Not taxable: A company buys gold necklaces from a French or European manufacturer and resells them as is to retail jewelry stores.

✅ Not taxable: A wholesaler buys watches from a supplier located in the European Union and resells them as is to professionals in France.

❌ Taxable upon import: A wholesaler imports jewelry or watches from a country outside the European Union. The tax is then collected by customs services upon importation, even if the products are subsequently resold only to professionals.

However, imports of watchmaking articles from Switzerland benefit from a specific exclusion.

❌ Potentially taxable: The trader sells new products directly to individuals. These retail sales may be subject to HBJOAT tax.

However, retail sales of second-hand goods and costume jewelry are subject to specific exclusions.

❌ Potentially taxable: The trader designs the products, has them manufactured, supplies the raw materials or has their own brand affixed. They can then be considered as participating in their manufacture.

Customized or processed products

A simple customization or transformation operation should not automatically be considered a taxable activity.

It is necessary to examine the exact nature of the intervention and the conditions under which the products are designed, manufactured, assembled or marked.

If the company participates in manufacturing within the meaning of Article L. 471-23 of the Code of Taxes on Goods and Services, it may become liable for the tax on the operations concerned.

Mixed activity

A company can carry out several activities simultaneously:

  • non-taxable wholesale trade; ;
  • taxable retail sales; ;
  • taxable imports; ;
  • a taxable manufacturing or contracting activity.

The fact of carrying out a taxable activity in parallel does not automatically make trading operations taxable.

The company must clearly distinguish the different flows in its accounting and only declare the transactions that fall within the tax base.

In case of doubt

If you have any doubts about an import, a transformation, a sale under your own brand or a particular distribution channel, contact Francéclat directly to obtain confirmation tailored to your situation.

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. 471-27 of the Code of Taxes on Goods and Services
  • Francéclat and télétaxe.fr: official presentation of the HBJOAT tax
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