Many European countries including France have adopted the system of vat or value added tax to tax services and goods, and if you intend to begin a small business in that country then knowing vatcontrol all about french vat will help you run your company efficiently. Even though 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 any local company. You can get vat registration along with a vat number in France as being a foreign company. Vat in France is known as TVA or Taxe sur la Valeur Ajoutee and is managed through 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.
In case 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 while also claiming back any vat that may have been paid in France. However, before you rush in to fill the vat form and make application for a vat reclaim, it is essential that you have thorough knowledge on uk vat, eu vat and even french vat so that you will not end up on the wrong side of any 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 very 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 avoid paying vat in France to begin with you may 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 will need to apply 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 decide to apply 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’s also certain goods and services that are vat exempt and knowing the correct vat rate should enable you to cut costs in your business in the very first place. Many of Europe now utilizes a common currency, i.e. the Euro, UK and some other countries within the EU still trade in their currency, although you will receive your vat refund in France only in Euros.
If you plan to begin importing goods from France or utilize services in the country you’ll be able to 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 in a position to reclaim vat which may have been paid in France. Knowing all 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.