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Public consultation – New rules for declaration and payment of import VAT

From January 1 , 2022, the declaration, collection and control of value added tax (VAT) applicable to imports and exits from suspensive regimes are transferred from the General Directorate of Customs and Indirect Duties (DGDDI ) to the General Directorate of Public Finance (DGFiP) ( General Tax Code [CGI], art. 287 and CGI, art. 1695 ) for:

  • all taxable persons, whether or not they are established in France;
  • all persons not subject and identified to VAT in France. In particular, legal persons governed by public law (State, local authorities, public establishments, etc.) may be concerned.

For these people, the import VAT declaration, due from 1 January 2022, will be made on the turnover declaration filed with the DGFiP services, and no longer during the customs clearance process.

Similarly, the VAT due on exit from VAT suspensive regimes will be entered on the turnover declaration filed with the DGFiP.

The deduction of VAT due on importation or on exit from suspensive regimes will be made on the same declaration, under the conditions of common law. This leads to eliminating any gap between the payment and the deduction of this tax and therefore any mobilization of cash for companies. In particular, when the VAT due on importation or on exit from suspensive regimes is fully deductible, which corresponds to the majority case, no amount of tax will be payable.

In addition, tax procedures (forced recovery, control, processing of complaints and litigation) will now be governed by the same provisions as those applicable to VAT due on domestic transactions, namely those that the book of tax procedures provides for taxes on turnover. In particular, the tax judge will now be the administrative judge, and no longer the judicial judge.

In order to accompany these changes, the law ( CGI, art. 286 ter , CGI, art. 286 ter A , CGI, art. 287 and CGI, art. 293 A ) and the doctrine have been enriched with details on the notion of importation, the operative event, the chargeability and the person liable for import VAT. It also results from these changes that the simplified VAT and turnover tax reporting system can no longer be used by companies that carry out intra-Community imports or acquisitions; these companies will have to waive the simplified regime during the financial year according to the terms specific to the latter.

Finally, the taxpayers, if necessary via their customs representative, will have to send certain targeted information to the DGDDI during the customs clearance process. These data transmission obligations, specific to import VAT, are distinct both from the obligations relating to the declaration and payment of VAT to the DGFiP and from the obligations relating to customs duties, with which they are accumulate. Their purpose is, on the one hand, to secure the settlement of VAT via an automatic transfer of information to the DGFiP which will allow it to target the controls and, on the other hand, to ensure a pre-filling of the declaration of turnover, the accuracy of which it will be up to the person liable to pay to verify.

The following BOIs are subject to public consultation from January 18, 2023 to April 15, 2023 inclusive to allow interested persons to send any comments to the administration. These comments must be made by email to the following address: [email protected] . Only signed contributions will be considered. As of this publication, you can take advantage of these comments until their possible revision at the end of the consultation.

Source: gouv.fr

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