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The HBJOAT tax: presentation and operation

What is the HBJOAT tax?

The HBJOAT tax is a sector-specific tax applicable to certain transactions involving products from the following sectors:

  • watchmaking; ;
  • jewelry store; ;
  • goldsmithing; ;
  • tableware.

It finances Francéclat's public service mission and its actions in support of the development, innovation, transformation and enhancement of these sectors.

For transactions carried out in France, the tax is declared and paid to Francéclat via the teletax.fr platform. For imports from certain countries outside the European Union, it is collected by Customs.

Who is liable?

Liability for taxation does not depend solely on the activity declared by the company. Two conditions must be met:

  • the company must carry out a taxable transaction; ;
  • This transaction must relate to a product included in the list of taxable products.

The tax may apply to manufacturers, contractors, retailers and importers, depending on the transactions carried out.

Manufacturers and clients

The following are concerned:

  • manufacturers who manufacture or assemble the products in France; ;
  • companies established in France that design products and have them manufactured by a third party under conditions where they are considered to be participating in their manufacture.

Sales made by these companies may be taxable, including when made to wholesalers or retailers.

Retailers

The retail sale in France of taxable new products is subject to the HBJOAT tax, regardless of the channel used: shop, e-commerce site, marketplace or click-and-collect.

This rule applies whether the activity is primary or secondary.

Importers

The importation of taxable products originating from countries outside the European Union may be subject to tax, subject to applicable exclusions and special regimes.

The tax is then usually collected by Customs upon importation.

Traders and wholesalers

Wholesale trade and pure trading are not subject to tax when they consist of buying goods and reselling them as is between professionals.

However, a wholesaler may be liable if they import the products from a third country, participate in their manufacture or also carry out taxable retail sales.

Which products are affected?

Taxable products are defined by regulations, by reference to the French product nomenclature, called CPF code.

Francéclat publishes a list and an explanatory note to identify the products concerned. For imports, correspondence with the customs nomenclature is used.

The list includes, among other things:

  • smartwatches, watches and other timers; ;
  • jewelry, precious metalwork and goldsmithing articles; ;
  • cultured pearls and certain worked precious or semi-precious stones; ;
  • costume jewelry items; ;
  • certain tableware products: dishes, glassware, cutlery and table knives.

The fact that a product is included in this list does not mean that all its sales are automatically taxable. The nature of the transaction must also be taken into account.

Which operations are excluded?

Second-hand products

Retail sales of second-hand watches, jewelry and other goods are not subject to the HBJOAT tax.

Article L. 471-27 of the Code of Taxation on Goods and Services expressly excludes second-hand goods.

Costume jewelry sold at retail

Costume jewelry is among the products subject to the tax, but its retail sale is expressly excluded.

However, sales made by their manufacturers to other professionals may be taxable.

Wholesale and pure trading

Resales in the same condition between professionals are not taxable, unless the company is also the manufacturer, client or importer for the operation concerned.

Services provided

Repair, overhaul, maintenance or restoration services are not subject to the HBJOAT tax.

What is the tax rate?

The HBJOAT tax rate is set at 0,19 %.

The tax is calculated on the pre-tax amount of taxable transactions.

Example

A jewelry store generates €200,000 (excluding VAT) in retail sales of new, taxable jewelry:

€200,000 × 0.19 % = €380 HBJOAT tax

Sales of second-hand products, services and other excluded transactions should not be included in this database.

How to declare and pay the tax?

The declaration is made online at teletaxe.fr.

The frequency depends on the amount of tax due during the previous calendar year:

  • less than €200: annual declaration; ;
  • from €200 to €1,000: quarterly declaration; ;
  • over €1,000: monthly declaration.

The declaration must be made electronically. Payment is made by bank card or direct debit.

When the annual tax amount is less than or equal to €20, the company is exempt from payment, but remains required to make its declaration.

What are the penalties for non-compliance?

The applicable sanctions are as follows:

  • Insufficient, inaccurate or omitted declaration: surcharge of 10 %; ;
  • late payment of a tax already assessed: surcharge of 10 %; ;
  • Taxation by default after failure to declare: surcharge of 40 %.

If a declaration is not filed, Francéclat may send a formal notice, assess the amount of tax due, and issue a payment order. Forced collection can then be carried out by the Public Treasury.

Where can I find help?

To verify the tax liability of an activity or the classification of a product, you can consult the documentation published on teletax.fr or contact the HBJOAT Tax service of Francéclat directly.

For complex situations, it is also recommended to have the treatment confirmed by your accounting firm or tax advisor.

Official sources

  • Code of taxation on goods and services, articles L. 471-1 to L. 471-58
  • Article L. 471-27 of the Code of Taxes on Goods and Services
  • Articles A. 471-8 and A. 471-9 of the Code of Taxation on Goods and Services
  • Articles D. 471-10 to D. 471-13 of the Code of Taxation on Goods and Services
  • Article 1840 X of the General Tax Code
  • Francéclat and teletax.fr
  • Directorate General of Customs and Indirect Taxes
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