Many Countries in Europe including France now utilize the system of vat or value added tax to tax goods and services, just in case you intend to start a business in that country then knowing vat control all about french vat can 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 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 will get vat registration along with 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. If you apply as a foreign company then there is no vat threshold or limit that needs to 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 you’ll be able to now import goods from France whilst claiming back any vat that might have already been paid in France. However, before you rush in to to fill the vat form and apply 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 will not find yourself on the wrong side of any vat laws in any country.
You can use the expertise of an experienced vat agent or consultant that knows all about vat rules in countries that do business with your 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. If you want to avoid paying vat in France in the first place then you can also submit the local country vat no while purchasing products or utilizing services. For those who have been charged TVA or French vat then you will 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 essential 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% while the reduced vat rates are 5.5% and 2.1% depending on 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 cut costs in 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, 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 you’ll be able to easily get a 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 which may have already been paid in France. Knowing about french vat will help you run your business efficiently and lower your costs that otherwise would have increased due to multiple taxation.