How can I get a VAT refund?
Companies subject to the payment of VAT must make their declarations on their goods and services offered. The sums which the company’s clients paid for VAT (and included in the sals prices) are then passed onto the State.
In return, companies may deduct from the VAT charged on their goods and services the VAT which they paid for purchases necessary to the company’s operations. The company will then pay the difference to the competent tax authority.
However, when the deductible VAT amount is greater than the VAT collected, the company will benefit from a VAT credit.
Should one have a VAT credit, two options become available:
- You can decide to set off or apply the credit to future tax seasons ; or
- You can choose to be refunded part or all of your VAT credit under certain conditions.
The conditions for VAT refunds vary depending on your company's tax system.
If your company falls under the Regular Corporate Tax Regime, two cases must be distinguished:
- If you declare your VAT monthly or quarterly, you can claim a refund of your VAT credit if it exceeds €760.
- If you declare your VAT annually, and your VAT payable does not exceed €15,000, then you will be able to claim a refund of your VAT credit if it exceeds €150.
If your company falls under the Simplified Corporate Tax Regime, you declare your VAT annually and you will be able to claim a refund of your VAT credit if it only exceeds €150.
alf supports you in your VAT registration procedures. For more information, please visit our page dedicated to your VAT paperwork.
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