Many European countries including France now utilize the system of vat or value added tax to tax goods and services, and if you intend to start a small business in this country then knowing vatcontrol all about french vat can help you run your business efficiently. Even if you have other offices in several EU countries, learning about vat in France can help you file vat returns and make an application for vat refunds within the prescribed time period.
France has several specific vat rules for those who like to do business in that country without forming any local company. You will get vat registration along with a vat number in France as being a foreign company. Vat in France is called TVA or Taxe sur la Valeur Ajoutee and is managed by 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 needs to be achieved before receiving your vat number.
In case you have another office in another eu country such as the UK, Sweden, Germany, Spain, Greece, Poland, or 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 fill the vat form and make application for a vat reclaim, it is essential 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 the vat laws in a country.
You can use the expertise of a knowledgeable vat agent or consultant that knows all about vat rules in countries which do business with your very own. It is possible to 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 you may 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 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 that you get vat registered in your own country before you apply 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% depending on the classification of products and services in France. There’s also certain services and goods that are vat exempt and understanding the correct vat rate should enable you to save money for your business in the very first place. While most of Europe now utilizes 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 are planning to start importing goods from France or utilize services in that country then you can easily get a own vat number in France by registering as being a foreign company. You will have to file regular vat returns however in return will also be in a position to reclaim vat that might have been paid in France. Knowing about french vat will help you run your organization efficiently and reduce your costs that otherwise would have increased due to multiple taxation.