VAT, Customs & Excises

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France: Treatment of import VAT evolution from January 1, 2022

In France, the management and recovery of import VAT are transferred from the General administration of Customs and Indirect Rights (“DGDDI”) to the General administration of Public Finances (“DGFiP”) from January 1 st, 2022. 

What are the new measures for the treatment of import VAT?

From this date, it is the VAT declaration that will allow both declaration and payment of import VAT: in this regard, the function of customs declarations (SAD) is therefore changed since the amount of import VAT appearing on the SAD will only be formulated for information.

This reform entails substantial practical changes, which are detailed in this note of November 15, 2021, from the DGFiP:

  • The principle of reverse-charge of import VAT (“ATVAI”) is generalized. As a result, that this new reporting method is mandatory for all entities identified for VAT purposes in France, which will put an end to two constraints that hitherto weighed on operators:
    • There will no longer be a need for prior authorization to benefit from the reverse charge of import VAT;
    • Operators who do not benefit from the ATVAI will no longer have to request a refund to make payments of this VAT.
  • The amount of import VAT will be pre-filled on the VAT return, but this amount may be changed by the taxpayer (some items will not be automatically pre-filled and other items may be corrected);
  • The VAT return will be amended accordingly to this new information (for example, lines have been added to provide information on “exits from the suspensive tax regime”, “imports placed under a suspensive tax regime”, “consumption of petroleum products ”…)
  • The management of suspensive tax regimes will also be handled by the DGFiP;

Note that the reform will also have repercussions for taxpayers placed under the simplified tax regime and those placed under a VAT-based exemption regime.

With its experts, EUROTAX assists you in your VAT reporting obligations and supports you for future changes, do not hesitate to contact us for any request, we also invite you to visit our VAT page for more information on our services.

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