End of transitional period for Import VAT changes in France

The use of the Import VAT reverse charge become compulsory in France from January 1, 2022.  However, a “soft landing” transitional period was introduced for companies who were in the process of obtaining a French VAT number. As obtaining a VAT number in France can typically take up to three months, businesses that could demonstrate that they had submitted a VAT registration application to the French Tax Authority, could import using the historic Import VAT regime i.e. continue to physically pay Import VAT to French Customs up to an extended date of May 20, 2022.

However, this transitional period has now ended and as such, going forward, all importers in France must have a French VAT registration number and this must be entered in the customs import declaration. The relevant Import VAT must be accounted for as a reverse charge (i.e. self-assessed) in the VAT return. The French Tax Authority create a pre-filled VAT declaration that is available on the 14th of each month via the businesses’ online tax portal. A web portal is also being created by French Customs to allow businesses to download monthly details of all imports into France. To download the data, the importing business will need both its French VAT Number and its SIREN number.

Get in touch to speak to one of our experts about becoming VAT registered in France or to discuss wider French VAT compliance including the upcoming e-invoicing and e-reporting requirements.