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Import VAT reverse-charge to be automatically applied as of January 2022 in France
Summary
Starting January 1st, 2022, the French tax authorities have announced that the import VAT will be automatically and mandatorily reported in the French VAT returns under the reverse charge mechanism by those taxpayers with a French VAT number.
Content
This means that instead of advancing the payment of import VAT at Customs, taxpayers will be able to directly declare it in the VAT return following the Reverse Charge mechanism. In other words, they would be able to declare it as payable and deductible in the same return, so the VAT impact is zero. This is a great cash flow advantage for those businesses making imports in France, who will not have to advance the VAT at Customs.
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