In France, the import VAT deferment scheme introduced for the first time in 2015 has been extended to all VAT registered businesses since January 1, 2022. The deferment system is now mandatory and businesses are no longer required to disburse the payment of French import VAT to the customs authorities.

The amount of import VAT due is rather postponed and included in the next VAT return filed by the importer of record in France. When the goods imported into France are used for business purposes, the amount of import VAT self-assessed in the VAT return can be deducted simultaneously, bringing down in most cases the actual VAT liability to zero.

It’s worth noting that the French import VAT deferment scheme is applicable to domestic companies as well as to foreign companies (i.e. businesses based in the EU and outside the EU). Therefore, it is no longer possible for a foreign business to import goods in France without a prior VAT registration in the country. The VAT registration process can take several weeks and should be initiated as soon as possible in order to avoid supply chain disruptions. In addition to a French VAT number, the foreign company must also apply for an (EU) EORI number if not yet registered.

For most non-EU companies willing to register for French VAT, it will be required to appoint a fiscal representative in France. The latter is a tax professional that usually files the VAT returns of foreign companies and liaises with the French tax authorities on behalf of its clients.

The legal requirement to appoint a fiscal representative does not apply to companies established in some non-EU countries that have concluded with France an international agreement on mutual assistance for tax recovery matters. It is the case for example for companies established in the United Kingdom, Norway, Iceland, Turkey, Ukraine, India, Japan, Republic of Korea, Australia, New Zealand, South Africa, Mauritius, Mexico, Tunisia, Ghana and several more. Businesses from these countries are however highly encouraged to hire a tax expert in France in order to make their tax processes and reporting obligations easier.

Once the French VAT number and the EORI number have been granted to the foreign company, it can start importing into France. No import VAT (20% standard rate) will be paid when the goods are cleared by the customs broker, but VAT returns must be filed in France as explained earlier.  A nil VAT return must be filed when there are no import flows or other taxable transactions carried out in France during an entire fiscal period (i.e. usually a calendar month).

Failure to file VAT returns in France can lead to tax penalties since the French tax authorities have a record of all the import transactions carried out in France under a VAT registration number granted to a foreign business.

Summary for foreign importers :

If you are a foreign company and you would like to import your own goods into France for business purposes, here are the key points to keep in mind:

1. Apply for a VAT number in France at least 4 to 6 weeks before the expected date of arrival of your cargo at the French borders;
2. Also apply for an EU EORI number if you do not yet have one;
3. You will need to appoint a fiscal representative in France if your company is not established in a Member State of the European Union;
4. The requirement to appoint a fiscal representative is not applicable if you are a non-EU business established in the United Kingdom or any other non-EU country having a bilateral tax agreement with France. It is however recommended in this case to appoint a local tax consultant in order to facilitate your tax processes and reporting obligations in France.
5. Once your French VAT/EORI numbers are available, you can start importing goods into France without paying import VAT to the Customs. However, you will need to file VAT returns in France and failure to do so may lead to tax penalties.

Questions ?

If you have any questions regarding VAT registration in France in order to be able to import goods in the country, please send us your message using our contact form or call +33-261-536-544.