- From 1 January 2022, the amount of import VAT is pre-filled on VAT returns to systematize the reverse charge mechanism.
- However, discrepancies often occur between the pre-filled amount and accounting extractions.
- These gaps can be caused by various factors, such as differences in the tax base and errors in import declarations or systems. Companies must decide whether to keep the pre-filled amount or modify it, but in either case, they must be able to justify it.
- To address discrepancies, companies can extract monthly data, request import files and declarations, and create scoping tables.
- Failure to reverse charge is sanctioned, and reverse charge is neutral for fully recovered taxable persons but not for partial taxable persons.
Sources
- Thomas Le Boucher
- marosavat.com – Import VAT reverse-charge will be automatically applied as …
- pwcavocats.com – Reverse-charge mechanism on import VAT mandatory as of …
- avalara.com – Changes to import VAT in France come into effect January 1 …
- taxnews.ey.com – France implements automatic reverse charge for import VAT …
- rmboulanger.com – Import VAT Deferment – RM Boulanger
- eurofiscalis.com – VAT in France: everything you need to know about French VATReverse Charge of VAT on Importation into France – Eurofiscalis
- vatit.com – France: Mandatory reverse charge of import VAT
- kpmg.com – France: Implications of revised VAT reverse-charge on imports
- roedl.com – The reform of import VAT: New declarative obligations for …
