France: New rules on Import VAT

Since 1 January 2022 companies have an obligation to obtain a French VAT number if they import goods into France and as per the new rules, companies report their import VAT in their VAT returns via the reverse charge mechanism instead of paying it to the Customs office.

There is a transitional period for foreign companies not yet identified for French VAT until 30 June 2022.

By the end of June 2022, companies importing goods into France without a French VAT number must include in section 44 of the import customs declaration the special mention G0008 “payable, not subject and not identified to VAT in France” (mentioned normally for imports done by individuals).

When importing, they will have to prove that they have initiated the VAT registration process before 1 March 2022.

Consequently, these companies will pay import VAT on their customs declarations.

After the end of the transitional period, if a taxpayer is not identified for French VAT when importing into France, they may see their imports into France blocked and they may also be liable to a penalty of 5% on deductible VAT.

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