Knowing all 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 small business in this country then knowing vat control about french vat will help you run your business 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 period.

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 along with a vat number in France as being a foreign company. Vat in France is called 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’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 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 rush in to fill up the vat form and apply for a vat reclaim, it is vital that you have thorough knowledge on uk vat, eu vat as well as french vat so you do not find yourself 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 about vat rules in countries which do business with your very own. It is possible to 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 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 essential you get vat registered in your own country before you try 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% dependant upon the classification of goods and services in France. There are also certain goods and services that are vat exempt and knowing the correct vat rate should help you to cut costs for your business in the very first place. While most of Europe now utilizes a common currency, i.e. the Euro, UK and some other countries within the EU still trade in their currency, although you will receive your vat refund in France only in Euros.

If you plan to begin importing goods from France or utilize services in that country then you can easily get your own vat number in France by registering as being a foreign company. You will have to file regular vat returns however in return may also be able to reclaim vat which may have been paid in France. Knowing all about french vat can help you run your business efficiently and lower your costs that otherwise could have increased due to multiple taxation.