Many Countries in Europe including France now utilize the system of vat or value added tax to tax services and goods, just in case you intend to start a small business in that country then knowing vatcontrol.com about french vat will help you run your business efficiently. Even if you have other offices in different EU countries, learning all about vat in France will help you file vat returns and apply 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 a local company. You can get vat registration and 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 through 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 while also claiming back any vat that may have been paid in France. However, before you decide to rush in to fill the vat form and apply for a vat reclaim, it is vital 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 any vat laws in any 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 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 the local country vat no while purchasing products or utilizing services. For those who have been charged TVA or French vat then you will need 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 vital 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% whilst the reduced vat rates are 5.5% and 2.1% dependant upon the classification of products and services in France. There are also certain services and goods that are vat exempt and understanding the correct vat rate should help you to cut costs for 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 within the EU still trade in their currency, although you will get your vat refund in France only in Euros.
If you plan to start importing goods from France or utilize services in that 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 but in return may also be able 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.