VAT returns in France
Depending on the volume of the company’s French activities, the companies registered in France for VAT purposes returns as per monthly, quarterly, annual or seasonal basis. For the monthly regime, companies must register their returns before the 19th (for European companies) or the 24th (for non-European companies) of that month.
French VAT rules which are drawn are drawn up by the EU are based on regulations of which France was a founding member. The standard French VAT rate is currently 20%. As an EU member state, France is compelled to apply the VAT Directives, which provides instructions on VAT.
VAT law in France
French Tax Code (CGI) mostly rule the French VAT law. Other related declarations come under the administration of Direction Generale des Douanes et Droits Indirects.
VAT registration in France
Companies not hooked up in France are allowed to buy or provide items and/or services in France with the European Single Market Initiative overseas corporations. Those companies in most cases have tax obligations in France and as an outcome, must be registered there for VAT causes.
Some common reasons where VAT registration is necessary are the following (non-limitative list):
- Organizations of events, conferences in France.
- Sales of goods to individuals or companies without VAT number in France.
- For more than three months, holding goods in stock in France.
- Distance sales to individuals in France (when the national threshold is less than the number of sales).
- Work on buildings in France.
VAT registration in France normally takes four weeks although the delay is not strict and depends upon the tax administration.
VAT fiscal representatives in France
For the tax authorities in France, full VAT fiscal representatives are no longer appointed by EU companies but may need the help of a tax agent.
On the other side, non-EU companies must appoint French fiscal representatives to expect those who are established in a state which signed mutual assistance agreement with France.
VAT compliance in France
Once registered in France, the enterprise’s agreements aren’t best obligatory to just claim and pay the VAT but to follow French compliance rules blanketed in the commands and steering on the French invoices, foreign currencies conversion and reporting, credit notes and corrections.
VAT rates in France
The standard French VAT rate is currently 20%. Reduced Principal rates are 5.5% and 10%. Other specific reduced rated exist such as 2.1% for goods from chemists or some newspapers or 13% for sales in Corsica Island.
For European Intrastat and EC lists declarations, DEB is the French equivalent. With operations of sales and purchases between France and other countries, DEB is an additional declaration to be submitted by companies. This is to be submitted on the 10th day of the following month.
VAT foreign refund
In France, foreign companies with no tax obligations are still allowed to recover the French VAT paid on the purchases for business purposes. This is another process that doesn’t require a French VAT registration and is opened by European Directives.