Reverse charge mechanism on imports

The reverse charge of import of VAT has now become an obligatory procedure as of January 1^st 2022. The management/collection of VAT due on imports will now be transferred to the French Tax authorities (DGFiP).

This ‘reverse charge’ mechanism will now be filled out on the importer’s French VAT returns. These VAT returns will no also have to be pre-filled.

Previously when goods are imported into France from outside the Single Market, import VAT had to be paid to the French customs authorities. This could then be refunded from the tax authorities if applicable. Additionally, the reverse charge mechanism on import tax was optional. This new reform now however makes it a mandatory step.

In light of this, any company who now wishes to import goods into France will now need to have a French intra-community VAT number – this would thus mean that companies would be subject to monthly or quarterly filing of VAT returns.

With these new rules and regulations in mind, if you think that you might need extra support with your EU distance sales, please do not hesitate to get in touch.