Knowing about french vat will help you run your business efficiently

Many European countries including France now utilize the system of vat or value added tax to tax goods and services, and if you intend to start a business in this country then knowing all about french vat can help you run your business efficiently. Even though you have other offices in different EU countries, learning all 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 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 being a foreign company. Vat in France is known as 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.

If you have another office in another eu country such as the UK, Sweden, Germany, Spain, Greece, Poland, or other country that follows vat you’ll be able to now import goods from France whilst claiming back any vat that might have already 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 vital that you have thorough knowledge on uk vat, eu vat as well as french vat so that you will not end up on the wrong side of any vat laws in a country.

You can use 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 to begin with then you can also submit the local country vat no while purchasing products or utilizing services. In case you 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 vital that you get vat registered in your own country before you decide to 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% depending on the classification of products and services in France. There’s also certain services and goods which are vat exempt and knowing 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 some other countries in the EU still trade in their own currency, although you will get your vat refund in France only in Euros.

If you plan to begin importing goods from France or utilize services in that 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 may also be in a position to reclaim vat which may have been paid in France. Knowing about french vat will help you run your organization efficiently and reduce your costs that otherwise could have increased due to multiple taxation.