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Knowledge base

I am a watchmaker-repairer, are my services subject to the HBJOAT tax?

Short answer

No. Watch repair, maintenance, overhaul and restoration services are not subject to the HBJOAT tax.

Article L. 471-35 of the Code of Taxation on Goods and Services provides that services relating to watchmaking, jewelry, goldsmithing and tableware products do not constitute a taxable event.

What is taxable and what is not?

✅ Taxable: retail sale of new watches falling within the list of taxable products, at the rate of 0.19 %.

❌ Not taxable: Sale of second-hand watches. Article L. 471-27 expressly excludes second-hand goods from the taxable event.

❌ Not taxable: repair, overhaul, maintenance, adjustment or restoration services.

❌ Not taxable: sale or re-invoicing of watchmaking supplies, such as batteries, replacement watch straps, movements and other watch components.

❌ Not taxable: sale of tools, workshop equipment or products that are not included in the official list of taxable products.

Mixed case: watch repair and sales

If you carry out both a repair and a sales activity, you must distinguish between the different income streams in your accounting:

  • The turnover corresponding to repair services is excluded from the tax; ;
  • the turnover corresponding to sales of taxable new watches must be declared; ;
  • Revenue from sales of second-hand watches is excluded; ;
  • Watchmaking supplies and replacement parts are excluded.

Are spare parts billed during a repair taxable?

No, when it comes to watchmaking supplies or components used to perform the repair.

The official list of taxable products includes watches and other timekeeping devices, but excludes their movements and components. Francéclat also specifies that supplies, such as replacement watch straps and batteries, are not taxable.

The labor and parts used in the repair should therefore not be included in the turnover subject to the HBJOAT tax.

Concrete example

A watchmaker charges for a service including:

  • €300 excluding VAT for labor; ;
  • €50 excluding VAT for parts and supplies; ;
  • €20 excluding VAT for a replacement battery and bracelet.

No HBJOAT tax is due on this invoice.

On the other hand, if the watchmaker simultaneously sells a new watch that falls under the list of taxable products, the pre-tax selling price of this watch is included in the tax base.

Official sources

  • Article L. 471-27 of the Code of Taxes on Goods and Services
  • Article L. 471-35 of the Code of Taxes on Goods and Services
  • Article A. 471-8 of the Code of Taxation on Goods and Services
  • Article A. 471-9 of the Code of Taxation on Goods and Services
  • Francéclat: Official list of taxable products for the watchmaking, jewelry, and fine jewelry sectors
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