How to open a VAT number in France

2. Obtaining the SIRET number

The first step to register for a VAT number in France is to obtain the SIRET number (Système d'Identification du Répertoire des Entreprises et de leurs Établissements). This number identifies the company and its commercial activities in France. To obtain the SIRET number, you must fill out the Cerfa form n° 14715*02 and submit it to the INSEE (National Institute of Statistics and Economic Studies).

3. Registering with the tax center

After obtaining the SIRET number, you must register with the relevant tax center for your commercial activity. You will be asked to provide information about your commercial activities, employees, and expected turnover.

4. Obtaining the VAT number

After completing registration with the tax center, you will be assigned your French VAT number. This will consist of 14 digits and begin with the letters FR.

5. Registration with URSSAF

Finally, you must register with URSSAF (Union for the Recovery of Social Security and Family Allowances Contributions). URSSAF is responsible for managing social contributions and health insurance for self-employed workers in France.

• To register with URSSAF, you must fill out Cerfa form n°13821*03;
• You will be asked to provide information about your commercial activities, employees, and expected turnover;
• After completing registration, you will receive a certificate of registration with URSSAF confirming your registration with French social security.

Remember that the procedure for registering for a VAT number in France may take time and patience. However, by following these steps correctly, you can obtain your French VAT number and start doing business in this country.

Taxes and social contributions for businesses in France

Opening a business in France requires paying various taxes and social contributions. Let's see what they are:

Corporate taxes

All companies registered in France are subject to corporate tax (IS). The base rate is 28%, but it can vary depending on the company's turnover. In addition, there is also an additional tax for large companies.

Social contributions

In France, all businesses must pay social contributions to cover the costs of social security, pensions, and healthcare for employees. These contributions represent approximately 45% of the total labor cost in France.

VAT (TVA)

The French VAT is called TVA (Taxe sur la Valeur Ajoutée) and is applied to the value added of every product or service sold. The standard rate is 20%, but there are also reduced rates for some goods and services such as food, medicine, and public transportation.

Cotisations foncières des entreprises (CFE)

The CFE is a municipal property tax that must be paid by all French businesses. Its amount depends on the size of the company and the value of its real estate assets.

Social contributions

Social contributions are another form of social security contributions that must be paid by companies in France. These contributions finance the professional training of employees and the unemployment fund. The amount to be paid depends on the company's turnover.

• For companies with a turnover below €760,000, the rate is 0.55%.
• For companies with a turnover between €760,000 and €3 million, the rate varies from 0.55% to 0.85%.
• For companies with a turnover above €3 million, the rate is 1%.

It is important to take into account all these taxes and social contributions when opening a business in France. It is advisable to consult an accountant or specialized lawyer for a complete overview of your company's taxes and fiscal obligations.

Useful tips for managing your VAT number in France

Once you have opened your VAT number in France, there are some useful tips that can help you manage your business.

Keep track of expenses

It is important to keep track of all expenses incurred in running your business. This can be done through the use of accounting software or with a simple spreadsheet. This way it will be easier to prepare your tax return and have a clear view of your company's budget.

Paying taxes regularly

In France, taxes must be paid regularly and on time. It is therefore important to always keep track of deadlines and plan ahead for payment, avoiding penalties or late fees.

Know French tax regulations

French tax regulations can be complex and different from those in your home country. It is therefore important to adequately inform yourself about French tax laws to avoid problems with the competent authorities.

Collaborate with local professionals

Collaborating with local professionals such as accountants or lawyers can be very useful in better understanding French tax and legal regulations. In addition, they can provide support in managing your business and dealing with any issues that may arise.

Stay up-to-date

Tax and legal regulations in France may change over time. It is therefore important to always stay up-to-date on news and changes made to laws to avoid penalties or problems with the competent authorities.

• Keep track of expenses;
• Paying taxes regularly;
• Know French tax regulations;
• Collaborate with local professionals;
• Stay up-to-date.

By following these simple tips, managing your VAT number in France can become easier and more efficient, allowing you to focus on your company's main activity.

Conclusions

In summary, opening a VAT number in France requires some time and patience but by following the right steps it can be done without difficulty. Once the business is opened, it is important to follow some useful tips such as keeping track of expenses, knowing French tax regulations and collaborating with local professionals for more efficient management of the business.

With a little effort and dedication, opening a VAT number in France can be the first step towards success in international entrepreneurship.