Many European countries including France now utilize the system of vat or value added tax to tax goods and services, and if you plan to start a small business in this country then knowing www.vatcontrol.com all about french vat can help you run your company efficiently. Even if you have other offices in different EU countries, learning all about vat in France can help you file vat returns and apply 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 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 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 needs to 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 while also claiming back any vat that may have been paid in France. However, before you rush in to to fill the vat form and make application for a vat reclaim, it is essential you have thorough knowledge on uk vat, eu vat and even french vat so that you will not end up on the wrong side of any vat laws in a country.
You can employ the services of a knowledgeable vat agent or consultant that knows all 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. In order to avoid paying vat in France in the first place you may 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 will need 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 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% while the reduced vat rates are 5.5% and 2.1% dependant upon the classification of products and services in France. There’s also certain goods and services that are vat exempt and understanding the correct vat rate should enable you to save money for your business in the very first place. While most of Europe now utilizes a common currency, i.e. the Euro, UK and some 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 plan to begin importing goods from France or utilize services in the country you’ll be able to easily get a own vat number in France by registering as being a foreign company. You will have to file regular vat returns but in return will also be in a position to reclaim vat which may have been paid in France. Knowing all about french vat can help you run your business efficiently and reduce your costs that otherwise could have increased due to multiple taxation.