Many European countries including France now utilize the system of vat or value added tax to tax services and goods, and if you plan to start a small business in this country then knowing vatcontrol.com all about french vat can help you run your company efficiently. Even though you have other offices in different EU countries, learning all about vat in France can 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 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 is managed by 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.
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 while also claiming back any vat that might have already been paid in France. However, before you decide to rush in fill up the vat form and make application for a vat reclaim, it is vital that 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 the vat laws in any country.
You can employ the expertise of an experienced vat agent or consultant that knows all about vat rules in countries which do business with your very own. It is possible to alternatively hire French agents to deal with all your vat issues in France including filing of vat returns and claiming vat refunds. If you want 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 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 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% depending on 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 help you to cut costs for your business in the very first place. Many 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 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 then you can 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 may also be able to reclaim vat which may have been paid in France. Knowing about french vat can help you run your business efficiently and reduce your costs that otherwise could have increased due to multiple taxation.