- Change in French tax guidelines now requires ownership of goods to deduct import VAT
- New rules stem from CJEU cases dated June 25, 2015, and October 8, 2020
- Guidelines were first published in January 2023 and amended in July 2023
- Companies in France face challenges with these rules when importing goods for repair or toll manufacturing
- Service providers who do not own the goods risk incurring non-deductible import VAT
- Exceptions exist for manufacturers importing goods for services and re-exporting them
- Current exceptions do not apply to all scenarios especially when repairs are done in another EU country or by a subcontractor
- Goods not returned outside the EU are also not covered
- Companies may need to use specific customs or tax regimes to manage these situations effectively
Source: taxand.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
