Autoliquidation of VAT on imports into France: arrangements in place!

Since 1 January 2017, the »Self-liquidation of VAT due on importation (ATVI) is applicable to all VAT taxable persons making imports into France, whether or not they are established in the national territory, and without the obligation to have a specific customs procedure. However, the conditions required are sufficiently stringent to give a real advantage to approved Economic Operators!

As a reminder, the implementation of autoliquidation has been effective since 01/10/2016 (cf.International atmosphere of October 2016).

The amending finance law for 2016 now allows all taxable persons who make imports into France for which they are liable for the tax to benefit from the self-liquidation of VAT: national and Community operators, but alsothird-party operators established outside the European Union. The latter category was initially excluded from the scheme under the Blue Economy Act of 20 June 2016.

Since VAT is a tax that is particularly vulnerable to fraud, the new provisions of the Financial Amendment Act 2016* (promulgated on 29/12/2016) provide a framework for the implementation of the generalisation of the VAT measure through an authorisation procedure:

For operators established in the EU, 4 criteria must be met:

• Make at least 4 imports into the EU territory in the 12 months preceding the application.
• Establish a system for managing customs and tax records to monitor import operations.
• Not having committed serious or repeated infringements of customs and tax provisions during the 12 months preceding the application.
• Have a satisfactory financial position in the last 12 months prior to the request (without guarantee or surety condition).

In practical terms, it will be up to customs to verify these criteria on the basis of the information available in customs and tax information systems.

NB: The French customs administration will register without further reviewand with a minimum time limitoperators already holding an authorisation to Approved Economic Operator (OAS). However, other operators will in no way undergo a customs audit.

For operators not established in the EU:

• They must clear customs through a customs representative holding an approval.OAS « customs simplifications »valid.

Background

Operators who had already benefited from VATTAI before the entry into force of the Financial Amendment Act 2016 continue to benefit from this scheme but must file a new VATTAI application within 3 years of their registration date.

Since the beginning of January 2017, anew self-liquidation application formis available. Operators may request this fromBusiness consulting unitsregional customs offices on which they depend or download it directly from the customs site **.

* Article 1695 as amended by ACT No.2016-1918 of December 29, 2016 – s. 87 (V)
** VAT self-liquidation form for taxable persons established/not established in the customs territory of the European Unionavailable to our subscribers on request.