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 business in that country then knowing vat control all about french vat can help you run your business efficiently. Even though you have other offices in several EU countries, learning all about vat in France can help you file vat returns and apply for vat refunds within the prescribed time limit.
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 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 it 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.
In case you have another office in another eu country like 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 might have been paid in France. However, before you decide to rush in 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 that you do not find yourself on the wrong side of the vat laws in any country.
You can use the services of a knowledgeable vat agent or consultant that knows all about vat rules in countries which do business with your very 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 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’ll have to apply 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 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% dependant upon the classification of goods and services in France. There’s also certain goods and services which are vat exempt and understanding the correct vat rate should enable you to cut costs 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 own currency, although 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 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 due to multiple taxation.