Knowing all about french vat can help you run your organization 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 begin a small business in that country then knowing vat control about french vat can help you run your company efficiently. Even if you have other offices in several EU countries, learning about vat in France can 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 a local company. You can get vat registration and a vat number in France as 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 being a foreign company then there is no vat threshold or limit that needs to 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 you’ll be able to now import goods from France while also claiming back any vat that might have already been paid in France. However, before you decide to rush in fill up the vat form and apply for a vat reclaim, it is vital you have thorough knowledge on uk vat, eu vat as well as french vat so that you do not end up on the wrong side of any vat laws in a country.

You can employ the expertise of a knowledgeable vat agent or consultant that knows all about vat rules in countries which do business with your own. You can alternatively hire French agents to handle all of 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 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 will 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 essential that 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 services and goods that are vat exempt and understanding the correct vat rate should help you to save money for your business in the very first place. While most of Europe now uses a common currency, i.e. the Euro, UK and a few other countries within the EU still trade in their own currency, although you will get your vat refund in France only in Euros.

If you are planning to start importing goods from France or utilize services in that 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 will also be able to reclaim vat which may have already been paid in France. Knowing about french vat will help you run your organization efficiently and lower your costs that otherwise could have increased as a result of multiple taxation.