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 plan to start a small business in this country then knowing about french vat can help you run your business efficiently. Even though you have other offices in different EU countries, learning about vat in France will help you file vat returns and apply for vat refunds well within the prescribed time limit vies.
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 along with a vat number in France as being 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. If you apply as being a foreign company then there is 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 then you can now import goods from France whilst claiming back any vat that may have been paid in France. However, before you decide to rush in 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 do not find yourself on the wrong side of any vat laws in a country.
You can employ the services 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. 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 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 regular 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 that are vat exempt and understanding the correct vat rate should enable you to save money in 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 currency, while you will get your vat refund in France only in Euros vat number.
If you are planning to start importing goods from France or utilize services in the country then you can 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 able to reclaim vat that might have been paid in France. Knowing all about french vat will help you run your business efficiently and lower your costs that otherwise could have increased due to multiple taxation.