Knowing all about french vat will help you run your business efficiently

Many Countries in Europe including France have adopted the system of vat or value added tax to tax services and goods, and if you intend to begin a small business in that country then knowing about french vat can help you run your company efficiently. Even though you have other offices in several EU countries, learning about vat in France will help you file vat returns and make an application for vat refunds well within the prescribed time limit.

France has several specific vat rules for those who like to do business in that country without forming any local company. You will 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 it is managed through the Direction Generale Des Douanes Et Droits Indirect. If you apply as 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 such as the UK, Sweden, Germany, Spain, Greece, Poland, or any other country that follows vat you’ll be able to now import goods from France whilst claiming back any vat that may have already been paid in France. However, before you decide to rush in to to fill the vat form and apply for a vat reclaim, it is essential you have thorough knowledge on uk vat, eu vat and even french vat so you will 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 that do business with your very own. You can 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 to begin with 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 decide to try 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% dependant upon the classification of goods and services in France. There’s also certain goods and services which are vat exempt and understanding the correct vat rate should help you to save money in your business in the very first place. Many of Europe now utilizes a common currency, i.e. the Euro, UK and some other countries within the EU still trade in their currency, while you will get your vat refund in France only in Euros.

If you plan to start importing goods from France or utilize services in the 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 in a position to reclaim vat that might 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 as a result of multiple taxation.