Import VAT: the essentials

Imports of goods are subject to VAT.

Since January 1, 2022, self-assessment of import VAT is mandatory and automatic for all companies and certain public bodies identified for VAT purposes in France.

Import VAT is still collected by the DGDDI when the person liable for payment is a private individual or a public body not identified for VAT purposes in France.

Regulatory clarification:

Import regime: articles 291 to 293 A quater and article 1695 of the General Tax Code (CGI);
Special regime for the French overseas departments: articles 294 to 296 ter of the CGI;
Special regime for Corsica: article 297 of the CGI.
Territorial scope
VAT is applicable in mainland France, Corsica and the departments of Guadeloupe, Martinique and Reunion.

VAT is temporarily not applicable in the departments of Guyana and Mayotte.

Transactions concerned
Imports of goods are subject to VAT.

Is considered as import of a good :

the entry into France of a good, originating in or coming from a State or territory outside the European Union (EU), and which has not been released for free circulation, or of a good coming from a territory referred to in Article 256-0 of the General Tax Code (CGI) of another EU Member State;
The release for consumption in France of a good placed, upon its entry into the territory, under one of the following regimes provided for by the Community regulations in force: conduct and placing under customs control, warehouses and temporary storage areas, free zone, free warehouse, import warehouse, inward processing, temporary admission with total exemption from import duties, external transit or under the internal community transit system.
The following are also considered as imports of goods

The entry into Metropolitan France of a good originating in or coming from the departments of Guadeloupe, French Guiana, Mayotte, Martinique or Reunion;
The entry into the departments of Guadeloupe or Martinique of a good originating in or coming from Metropolitan France, another EU Member State, the departments of French Guiana, Mayotte or Reunion;
The entry into the department of Reunion of a good originating from or coming from Metropolitan France, another EU Member State, the departments of Guadeloupe, Guyana, Mayotte or Martinique.
Chargeable event and liability
Upon importation, the chargeable event occurs and the tax becomes due at the time the goods are considered imported.

Taxpayer
As of January 1, 2022, the taxpayer is :

Where the goods are the subject of a supply located in France, in accordance with Articles 258(I) to (IV), or of a distance selling of goods imported, dispatched or transported to another Member State, the person carrying out the supply ;
Where the goods are the subject of a distance selling of imported goods not covered by the transactions listed in the first point and a taxable person facilitates the supply through the use of an electronic interface, such as a marketplace, platform, portal or similar device, that taxable person;
In other situations, the recipient of the goods as indicated on the import declaration;
By way of derogation from the three points mentioned above, the person using the option provided for in Article 293 Ac.
In addition to the information required to establish the taxable amount, the taxable person shall provide the DGDDI with his valid French intra-Community VAT number, as well as any other information that may be useful for tax control purposes.

This tax is jointly and severally due by the customs representative who acts in the framework of an indirect representation mandate, as defined by the Customs Code of the Union (CDU).

Taxable amount
The taxable amount is the customs value, as defined by the Community regulations in force.

The tax base includes the following

taxes, duties, levies and other charges due on account of the importation, with the exception of VAT itself; ancillary costs, such as commission, packaging, transport and insurance costs incurred up to the first place of destination.
Where goods placed under a VAT suspension system listed in II are released for consumption, the taxable amount shall also include the supply of services carried out under the system or directly linked to the placing of the goods under the system, other than the ancillary costs mentioned above.

Goods that are temporarily exported and reimported after having been repaired, transformed, adapted, made over or worked on outside the Community territory are subject to VAT, upon reimportation, on the value of the goods and services supplied by the supplier.

Reverse charge of import VAT
Since January 1, 2022, the management and collection of import VAT are transferred to the Directorate General of Public Finance (DGFiP).

The declaration and payment of import VAT is made directly in support of the VAT return (monthly or quarterly CA3) instead of the customs declaration. This new declarative method is mandatory for all taxpayers identified for VAT purposes. It allows the concerned taxpayers to collect and deduct simultaneously the import VAT on the VAT return, without cash advance.

If you have any questions, please contact your local business tax office (SIE) or the Direction générale des entreprises (DGE).

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^{Source : douane.gouv.fr}‍