Knowing about french vat can 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, just in case you intend to begin a business in that country then knowing all about french vat will 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 make an application for vat refunds 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 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 is managed through the Direction Generale Des Douanes Et Droits Indirect. If you apply as a foreign company then there’s no vat threshold or limit that should be achieved before receiving your vat number.

In case 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 might have been paid in France. However, before you rush in fill up the vat form and apply for a vat reclaim, it is essential you have thorough knowledge on uk vat, eu vat as well as french vat so you will not end up on the wrong side of any vat laws in any country.

You can employ the services of a knowledgeable vat agent or consultant that knows all about vat rules in countries that do business with your very 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. If you want to avoid paying vat in France in the first place then you can also submit the 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 that you get vat registered in your own country before you try for a vat refund in France. The standard vat rate in France is 19.6% whilst the reduced vat rates are 5.5% and 2.1% dependant upon the classification of products and services in France. There’s also certain services and goods that 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 uses a common currency, i.e. the Euro, UK and a few other countries within the EU still trade in their 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 the country you’ll be able to easily get your 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 already been paid in France. Knowing about french vat will help you run your business efficiently and lower your costs that otherwise could have increased due to multiple taxation.