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I sell costume jewelry at retail: am I subject to the HBJOAT tax?

Short answer

No, if you buy costume jewelry to resell it as is at retail.

Article L. 471-27 of the Code of Taxation on Goods and Services expressly excludes retail sales of costume jewelry from the taxable event of the HBJOAT tax.

However, this answer needs to be qualified if you manufacture the jewelry, have it manufactured under your brand, or import it from a country outside the European Union.

What is costume jewelry?

Costume jewelry consists of decorative items that do not fall under the category of jewelry made from precious metals.

They can be made of steel, brass, zamak, glass, crystal, resin, wood, fabric, mother-of-pearl or other non-precious materials.

However, the classification depends on the product's official designation. The trade name "costume jewelry," its appearance, or its price are not always sufficient to determine its tax treatment.

Why is retail sales not taxable?

Costume jewelry is among the products falling under the HBJOAT sector.

However, article L. 471-27 specifically excludes their retail sale from the taxable event.

A retailer who buys costume jewelry from a supplier and resells it as is to his customers should therefore not include these sales in the turnover subject to the HBJOAT tax.

Concrete examples

A merchant buys stainless steel necklaces, zamak rings or glass bracelets from a supplier, then resells them as is to his customers.

These retail sales are not subject to HBJOAT tax.

In what cases can the tax apply?

However, the tax may apply when the company:

  • manufactures the costume jewelry herself; ;
  • has them manufactured under conditions where it is considered to be participating in their manufacture; ;
  • imports them from a country outside the European Union.

The situation therefore depends both on the classification of the product and the role of the company: simple retailer, manufacturer, client or importer.

Mixed activity: costume jewelry and fine jewelry

If you sell both costume jewelry and new fine jewelry, you must distinguish between the different sales categories:

  • Retail sales of costume jewelry are exempt from the tax; ;
  • Retail sales of new precious jewelry falling within the list of taxable products are subject to the HBJOAT tax; ;
  • Sales of second-hand goods are also excluded from the tax.

How do I check the classification of my products?

If in doubt, refer to the official list of taxable products published by Francéclat on teletax.fr.

The product classification and the nature of your business determine whether the transaction is taxable.

Official sources

  • Article L. 471-27 of the Code of Taxes on Goods and Services
  • Official list of products subject to HBJOAT tax
  • Francéclat and teletax.fr
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