Many Countries in Europe including France have adopted the system of vat or value added tax to tax goods and services, and if you plan to begin a business in this country then knowing vatcontrol about french vat can help you run your company efficiently. Even though you have other offices in several EU countries, learning about vat in France will help you file vat returns and make an application 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 any local company. You will get vat registration and a vat number in France as a foreign company. Vat in France is known as TVA or Taxe sur la Valeur Ajoutee and is managed by the Direction Generale Des Douanes Et Droits Indirect. In case you apply as being 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 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 might have already been paid in France. However, before you rush in to fill up the vat form and make application for a vat reclaim, it is essential you have thorough knowledge on uk vat, eu vat as well as 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 an experienced vat agent or consultant that knows about vat rules in countries which 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 not pay vat in France to begin with 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 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 essential you get vat registered in your own country before you apply 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% dependant upon the classification of goods and services in France. There are also certain services and goods which are vat exempt and understanding the correct vat rate should enable you to save money in your business in the very first place. While most of Europe now uses a common currency, i.e. the Euro, UK and a few other countries within the EU still trade in their own currency, while you will get your vat refund in France only in Euros.
If you are planning to begin importing goods from France or utilize services in that country then you can easily get a own vat number in France by registering as a foreign company. You will have to file regular vat returns but in return will also be in a position to reclaim vat that might have been paid in France. Knowing all about french vat will help you run your organization efficiently and lower your costs that otherwise would have increased due to multiple taxation.