Companies established outside the EU: get refund of the VAT paid in France.
Many companies established outside the Union without permanent establishment in the EU do not request refund of VAT on expenditure incurred in Europe and particularly in France for professional purposes.
In Europe the rate reaches 27% (Hungary) and 20% in France. The financial loss is significant and may restrict the choice of development strategy.
The EU Directive n° 86/560 / EEC of 17 November 1986, called « 13th Directives » corrects this situation enhances the principle of neutrality of VAT.
- The company shall not be established in France.
- The company must not carry out delivery of goods or services located in France.
- The refundable tax that is charged on all services were rendered and movable property they have acquired or imported in France during the reference period for the realization or for the needs:
- Operations whose place of taxation is located abroad, but that would be deductible if their place of taxation were located in France;
- Operations whose place is deemed not to be located in France;
- The tax refund is in principle determined in accordance with the French domestic rules for deduction of VAT.
- Minimum VAT:
- € 400 for quarterly applications
- € 50 for annual applications
- Applications may be submitted during the month following the period (calendar quarter or calendar year) to which they relate. They must be lodged before the end of the sixth month following the calendar year in which the tax became payable to restore (June 30 N + 1 for an application for a year N)
- Designation of a tax representative in France who will take this step.
- Produce the original purchase invoices (or import documents) and any evidence of payment of invoices