VAT for goods imported into France handled through French VAT return from 1 January 2022
France does not allow import VAT to be handled through the VAT return currently. That will change from 1 January 2022. The French authorities have decided to implement an automatic reverse charge mechanism for import VAT. This means your company can avoid significant pre-financing costs.
Reverse charge rule
The rule applies to all companies. It makes no difference whether your company is registered in France or abroad. Under the new reverse charge rule, VAT is reported and deducted as part of the French VAT return. That means pre-financing is no longer necessary.
Requirements
If you wish to trade outside the European Union, you must first apply to Customs for an EORI number. To make use of the French reverse charge mechanism, you must also register for VAT in France. Vandelanotte’s experts can help you register for a French VAT number, thereby improving your company’s cash flow situation.
Do you have any questions about the new French reverse charge rule, or would you like us to apply for a French VAT number for you? Please don’t hesitate to contact one of our experts by means of the form below
We base our advice on current legislation, interpretations and legal doctrine. This does not prevent the administration from being able to challenge it or to change existing interpretations.
