What Does VAT Mean in French?
VAT, or Value Added Tax, is a tax system used in France and many other countries around the world. In France, VAT is known as “la taxe sur la valeur ajoutée” (TVA). It is a form of consumption tax that is applied to the value of goods and services. VAT is collected by the French government and is used to fund various public services, such as healthcare and education. The rate of VAT in France is 20%, which is one of the highest in the European Union. VAT is applied to most goods and services sold in France, with some exceptions. For example, some food products, books, and medicines are exempt from VAT. Additionally, some services, such as legal and financial services, are also exempt. VAT is collected at every stage of the supply chain, from the manufacturer to the retailer. When a business purchases goods or services, they are able to reclaim the VAT they paid. This is known as a “credit”, and it can be used to offset the amount of VAT they must pay on their own sales. For businesses that export goods to other countries, they can claim a “refund” on the VAT they paid. This can be used to reduce the cost of their exports. VAT is an important source of revenue for the French government, and it is a key part of the French tax system. It is a complex system, but understanding how it works can help businesses to save money and ensure they are compliant with the law.