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the cost of goods sold,<\/p>\n<\/li>\n
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the value of unsold inventory at the end of each accounting period.<\/p>\n<\/li>\n<\/ul>\n
While it is recommended to keep the inventory book updated throughout the year, for self\u2011employed persons<\/b>, an annual record<\/b> of inventory levels and their variation is sufficient.<\/p>\n
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\n\ud83c\udfa4 Only materials and equipment intended for resale should be recognized as inventory. Do not include assets intended for internal use or depreciation.
\u200bSource<\/a><\/p>\n<\/div>\n
\n\ud83d\udd04 Why track stock variations?<\/h2>\n
Your stock is influenced by two elements:<\/p>\n
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Purchases and sales<\/b> of goods<\/p>\n<\/li>\n
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Price changes<\/b> in the products held<\/p>\n<\/li>\n<\/ul>\n
The goal is to account only for the gain at the time of sale<\/b>. Your taxable income is adjusted based on stock value.<\/p>\n
\n\ud83e\udea1 What is a stock variation?<\/h2>\n
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\n \n \u2705 Stock variation = Ending stock \u2212 Starting stock<\/b><\/i><\/p>\n
\u2705 Stock only concern goods<\/b>, not services<\/b>.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
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Positive variation<\/b>: your stock increases (you bought more than you sold). This does not increase your tax, since purchases are deductible as business expenses. The stock variation offsets<\/b> this deduction: the net effect is neutral<\/b>.<\/p>\n<\/li>\n<\/ul>\n
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\n \n \ud83d\udc49 In the income tax return, this increases the amount in code 1600<\/b>, as it reflects a temporary gain due to purchases that have not yet been sold.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
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Negative variation<\/b>: your stock decreases (you\u2019ve sold goods previously purchased). That means you realized a profit margin and will be taxed only on that margin<\/b>.<\/p>\n<\/li>\n<\/ul>\n
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\n \n \ud83d\udc49 In the income tax return, this reduces the amount in code 1600<\/b>, as you are only taxed on the profit margin actually realized.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
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\ud83d\udcc6 Three key moments of stock management<\/h2>\n
1. At purchase<\/h3>\n
When you buy goods intended for resale:<\/p>\n
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Stock increases<\/p>\n<\/li>\n
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This increase is fiscally offset by a deductible business expense<\/p>\n<\/li>\n
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If you are VAT\u2011registered, you can deduct VAT. Therefore, your stock will always be valued at the purchase price, excluding VAT<\/b>. If VAT is non\u2011deductible<\/b> fully or partially, that portion is included<\/b> in the cost of stock.<\/p>\n<\/li>\n<\/ul>\n
2. At sale<\/h3>\n
When you sell goods:<\/p>\n
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stock decreases<\/p>\n<\/li>\n
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You generate revenue, but you’ve already deducted the purchase. The negative variation corrects your taxable profit so that only the margin is taxed.<\/p>\n<\/li>\n<\/ul>\n
3. In the income tax declaration<\/h3>\n
Stock variation must be entered once, at year-end<\/b>, in your income tax return.<\/p>\n
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In Accountable, this is done at step 7 \u2013 Stock Variation<\/b>.<\/p>\n
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\n \n \ud83d\udcc8 The amount is automatically integrated into step 9 \u2013 Review, box XVII \u2013 1600, to adjust your gross profit :<\/b><\/p>\n
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\n\ud83d\udd0e Practical examples of stock variation<\/h2>\n
\ud83d\udccb Example 1: Purchase without sale (neutral impact)<\/h3>\n
You purchase \u20ac5,000 of goods for resale, making no sales during the year.<\/p>\n
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Starting stock: \u20ac0<\/p>\n<\/li>\n
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Ending stock: \u20ac5,000<\/p>\n<\/li>\n
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Stock variation: +\u20ac5,000 (5,000 \u2212 0)<\/b><\/p>\n<\/li>\n
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\u2705 Impact: neutral on profit (purchase offset by stock)<\/p>\n<\/li>\n
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\ud83d\udd39 In Accountable: enter +\u20ac5,000<\/b> at step 7<\/p>\n<\/li>\n<\/ul>\n
\n\ud83d\udccb Example 2: Sale of existing stock (negative impact)<\/h3>\n
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Starting stock on 01\/01\/2025: \u20ac10,000<\/p>\n<\/li>\n
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Ending stock on 31\/12\/2025: \u20ac5,000<\/p>\n<\/li>\n
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Variation: 5,000 \u2212 10,000 = \u2212\u20ac5,000<\/b><\/p>\n<\/li>\n
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\u2705 Impact: profit decreases, you are taxed on the margin<\/p>\n<\/li>\n
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\ud83d\udd39 In Accountable: enter \u2212\u20ac5,000<\/b> at step 7<\/p>\n<\/li>\n<\/ul>\n
\n\ud83d\udccb Example 3: Sale then restocking (positive variation)<\/h3>\n
Starting stock on 01\/01\/2025: \u20ac5,000<\/p>\n
You sell all that stock during the year. Then you restock \u20ac7,500, which you do not resell.<\/p>\n
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Ending stock: \u20ac7,500<\/p>\n<\/li>\n
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Variation: 7,500 \u2212 5,000 = +\u20ac2,500<\/b><\/p>\n<\/li>\n
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\u2705 Impact: you generated a margin on the sale, and the new stock adds value to your holdings. You are taxed on the margin realised.<\/p>\n<\/li>\n
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\ud83d\udd39 In Accountable: enter +\u20ac2,500<\/b> at step 7<\/p>\n<\/li>\n<\/ul>\n
\n\ud83d\udccb Example 4: Full sale + restock + partial sale<\/h3>\n
You sell your initial sotck (\u20ac5,000), purchase \u20ac7,500 of new goods, and sell part of them for \u20ac3,500.<\/p>\n
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Starting stock: \u20ac5,000<\/p>\n<\/li>\n
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Ending stock: \u20ac4,000 (7,500 \u2212 3,500)<\/p>\n<\/li>\n
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Variation: 4,000 \u2212 5,000 = \u2212\u20ac1,000<\/b><\/p>\n<\/li>\n
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\ud83d\udccc Variation of stock = 4,000 \u2212 5,000 = \u2212\u20ac1,000<\/b><\/p>\n<\/li>\n
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\u2705 Impact: you are taxed only on the margin, because the final stock value is lower than at the start<\/p>\n<\/li>\n
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\ud83d\udd39 In Accountable: enter \u2212\u20ac1,000<\/b> at step 7<\/p>\n<\/li>\n<\/ul>\n
\n\ud83d\udcca Easier Tracking with our Excel tool<\/b><\/h2>\n
To help you track your stock throughout the year, use our Google Sheet<\/a><\/b> or (download an Excel<\/b> file)<\/a>. It automatically calculates the stock variation to report in your income tax declaration.<\/p>\n
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