Many European countries including France have adopted the system of vat or value added tax to tax goods and services, just in case you intend to start a business in this country then knowing vatcontrol.com all about french vat can help you run your business efficiently. Even though you have other offices in different EU countries, learning all about vat in France will help you file vat returns and apply for vat refunds well within the prescribed time period.
France has several specific vat rules in case you want to do business in that country without forming any local company. You can 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 is managed through the Direction Generale Des Douanes Et Droits Indirect. If 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 like 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 already 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 you have thorough knowledge on uk vat, eu vat and even french vat so you do not find yourself on the wrong side of the vat laws in a country.
You can employ the expertise of a knowledgeable vat agent or consultant that knows about vat rules in countries which do business with your own. You can alternatively hire French agents to handle all 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. For those who have been charged TVA or French vat then you’ll need 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 that 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% while the reduced vat rates are 5.5% and 2.1% dependant upon the classification of products and services in France. There’s also certain goods and services that are vat exempt and knowing the correct vat rate should enable you to save money for your business in the very first place. Many of Europe now utilizes a common currency, i.e. the Euro, UK and a few other countries in the EU still trade in their own currency, although 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 then you can easily get your own vat number in France by registering as a foreign company. You will have to file regular vat returns however in return will also be able to reclaim vat that might have been paid in France. Knowing about french vat can help you run your organization efficiently and reduce your costs that otherwise could have increased due to multiple taxation.