France is not only a beautiful destination for tourists who choose it as one of their favourite destinations, but also a country with a good economic situation. This is the reason why there are a lot of persons who decide to start a business here or to import goods. But there are, however, some laws and rules that people have to take into consideration when they begin their activity in this domain. Here there is some information about the most important of them.
VAT in France – a very important aspect
VAT is a tax which people should pay for every step which is done in the process of producing something, starting with the materials sourcing and ending with the transport of the goods. And when it comes to France people apply the same rules as in the case of other European countries which are EU members.
For a better understanding, the rate of France VAT is 20%. But there are some exceptions when this tax rate is lower in this country and this thing is applied in the case of food, non-alcoholic drinks such as juice or tea, pharmaceutical products, books, newspapers and restaurants. If you want to compare it with other rates from Europe, you will see that is cannot be considered too high. For example a country like Romania, even if it is has a smaller area than France, has a 24% rate of VAT. But there are also, countries like Germany or Malta which have lower VAT rates.
Moreover, France has an interesting history when it comes to VAT because it is the country where this tax was introduced for the first time, in 1954 and it was considered an alternative for the tax for sale. Nowadays, the amounts which are collected as VAT taxes represent 50% of the France budget revenues.
Do not believe that VTA is a bad thing. Its role is to help economy function in good conditions. For example, there are countries where the VAT rate is zero, but the authorities ask you to pay a large tax for the profit you make. USA is a country which applies this policy and which has a 40% rate of profit. On the other hand, if you are not interested in doing business in France and you just want to buy something, you have to know that you will only pay the VAT once. As an individual, there are no legal measures which can help you avoid the payment of this tax.
Do not regret if you choose France as the perfect place for doing business!
It is highly recommended to start doing business in France and if you are not convinced yet, here they are some reasons for doing that:
- It can be regarded as a favourable place for doing business, thanks to its tax friendly policy.
- There are a lot of companies in France. More precisely, their number is somewhere around 20 500.
- The majority of business conferences are organised in France and they are considered some of the most important summits where only world leaders take part in.