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

Many Countries in Europe including France now utilize the system of vat or value added tax to tax goods and services, just in case you plan to start a business in this country then knowing all about french vat can help you run your business 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 well 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 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 is managed by the Direction Generale Des Douanes Et Droits Indirect. In case you apply as a foreign company then there is no vat threshold or limit that needs to 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 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 rush in to fill up the vat form and make application for a vat reclaim, it is vital 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 an experienced vat agent or consultant that knows about vat rules in countries which do business with your very own. You can alternatively hire French agents to deal with all of 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 your 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 make an application 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 standard vat rate in France is 19.6% whilst the reduced vat rates are 5.5% and 2.1% depending on the classification of products and services in France. There are also certain services and goods that are vat exempt and knowing the correct vat rate should help you to cut costs in your business in the very first place. Many of Europe now uses a common currency, i.e. the Euro, UK and some other countries within the EU still trade in their own currency, while 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 then you can easily get a own vat number in France by registering as a foreign company. You will have to file regular vat returns however in return may also be in a position to reclaim vat that might have already been paid in France. Knowing all about french vat can help you run your business efficiently and reduce your costs that otherwise would have increased as a result of multiple taxation.