Many Countries in Europe including France now utilize the system of vat or value added tax to tax services and goods, just in case you intend to start a small business in this country then knowing vat control about french vat will help you run your company efficiently. Even if you have other offices in different EU countries, learning about vat in France can help you file vat returns and make an application for vat refunds within the prescribed time limit.
France has several specific vat rules in case you want to do business in that country without forming a local company. You can get vat registration along with a vat number in France as a foreign company. Vat in France is called TVA or Taxe sur la Valeur Ajoutee and is managed through the Direction Generale Des Douanes Et Droits Indirect. If you apply as being a foreign company then there is no vat threshold or limit that should be achieved before receiving your vat number.
If you have another office in another eu country like the UK, Sweden, Germany, Spain, Greece, Poland, or any other country that follows vat you’ll be able to now import goods from France while also claiming back any vat that might have been paid in France. However, before you decide to rush in to fill up the vat form and apply for a vat reclaim, it is vital you have thorough knowledge on uk vat, eu vat and even french vat so that you do not end up on the wrong side of any vat laws in any country.
You can use the services of an experienced vat agent or consultant that knows about vat rules in countries which do business with your very own. It is possible to alternatively hire French agents to deal with all your vat issues in France including filing of vat returns and claiming vat refunds. If you want to avoid paying vat in France to begin with you may also submit the local country vat no while purchasing products or utilizing services. In case you have been charged TVA or French vat then you will have to make an application for vat reclaim after fulfilling all documentary requirements including showing the vat certificate of your country in France.
However, it is vital you get vat registered in your own country before you try for a vat refund in France. The regular vat rate in France is 19.6% whilst the reduced vat rates are 5.5% and 2.1% depending on the classification of goods and services in France. There are also certain goods and services which are vat exempt and knowing the correct vat rate should help you to cut costs in your business in the very first place. Many of Europe now uses a common currency, i.e. the Euro, UK and some other countries within the EU still trade in their currency, while you will get your vat refund in France only in Euros.
If you plan to start importing goods from France or utilize services in that country you’ll be able to easily get your own vat number in France by registering as being a foreign company. You will need to file regular vat returns however in return may also be able to reclaim vat which may have been paid in France. Knowing about french vat will help you run your organization efficiently and reduce your costs that otherwise could have increased as a result of multiple taxation.