Many Countries in Europe including France have adopted the system of vat or value added tax to tax services and goods, just in case you plan to start a small business in that country then knowing https://vatcontrol.com all 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 will help you file vat returns and make an application for vat refunds well within the prescribed time period.
France has several specific vat rules for those who like to do business in that country without forming a local company. You will get vat registration and a vat number in France as a foreign company. Vat in France is called TVA or Taxe sur la Valeur Ajoutee and it is managed by the Direction Generale Des Douanes Et Droits Indirect. In case you apply as a foreign company then there’s no vat threshold or limit that should be achieved before receiving your vat number.
If you have another office in another eu country such as the UK, Sweden, Germany, Spain, Greece, Poland, or any other country that follows vat then you can now import goods from France whilst claiming back any vat that may have been paid in France. However, before you rush in to to fill the vat form and make application for a vat reclaim, it is vital that you have thorough knowledge on uk vat, eu vat as well as french vat so you will not end up on the wrong side of any vat laws in a country.
You can employ the services of an experienced vat agent or consultant that knows about vat rules in countries which do business with your own. You can alternatively hire French agents to deal with all of your vat issues in France including filing of vat returns and claiming vat refunds. In order to not pay vat in France in the first place then you can also submit your local country vat no while purchasing products or utilizing services. In case you have been charged TVA or French vat then you’ll have to make an application for vat reclaim after fulfilling all documentary requirements including showing the vat certificate of your own country in France.
However, it is vital that you get vat registered in your own country before you decide to try for a vat refund in France. The standard vat rate in France is 19.6% whilst the reduced vat rates are 5.5% and 2.1% dependant upon 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 enable you to save money in your business in the very first place. While most 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 receive your vat refund in France only in Euros.
If you plan to start importing goods from France or utilize services in the country then you can easily get a own vat number in France by registering as a foreign company. You will need to file regular vat returns but in return may also be in a position to reclaim vat which may have already been paid in France. Knowing about french vat can help you run your organization efficiently and reduce your costs that otherwise would have increased as a result of multiple taxation.