YOU IMPORT OR PURCHASE GOODS IN FRANCE THAT YOU RESELL IN FRANCE
IS VAT DUE ON IMPORTS AND PURCHASES IN FRANCE ?
When the goods are dispatched from a third country outside the European Union to be delivered to a customer in the European Union under DDP incoterm (Delivery Duty Paid), the supplier bears costs (transportation costs and duties on goods collected by the customs authorities). Clearance can lead to the payment of duties payable on imports in the country where the goods are imported.
Attention, as of January 1, 2022, the VAT due upon release for consumption in France of goods coming from outside of the European Union, has no longer to be paid at the time of customs clearance in France and must be reverse charged (declared as VAT due) on French VAT returns, and is in principle deducted in the same return. This is a simple book entry, so no cash advance is required. If you plan to import goods in France, you have to apply for a French VAT number.
When goods are purchased in France, the French VAT is charged by the supplier established in France if the goods are delivered in France.
CAN YOU GET THE VAT REFUND ON PURCHASES IN FRANCE ?
Your company is generally entitled to get a refund of VAT on purchases in France, regardless of the location of its registered office or establishment, subject to the standard rules of VAT deduction.
VAT can be reclaimed under certain conditions according to two different procedures:
- if the supplier established outside France must be registered for VAT in France, the VAT refund can be reclaimed together with VAT returns,
- if the supplier established outside France does not need to be registered for VAT in France, the VAT refund can be reclaimed as follows depending on whether the applicant is established within or outside the EU:
- If the provider is established in the EU, the VAT refund claims can be submitted by the company or by a representative on the national portal to the tax authorities of the Member State where the business is established, not later than 30 September of the calendar year following the date of invoice or payment of VAT, as appropriate.
- If the supplier is established outside the EU, through a tax representative established in France, which submits the VAT refund claim on its name in the framework of the procedure under the 13th Directive VAT 86/560/EC, no later than 30 June of the calendar year following the date of invoice or payment of VAT, as appropriate.
SHOULD YOU REGISTER FOR VAT IN FRANCE ?
- Sales to companies (B2B)
- Sales to companies registered for VAT in France
If your company performing purchases in France is not established in France and the client to whom it sells the goods is a company registered for VAT in France, it has to charge it without French VAT. The customer will reverse charge VAT.
If your company performs sales only to companies registered for VAT in France, it does not have to register for VAT in France, nor to prepare VAT returns.
- Sales to companies not registered for VAT in France:
These sales must be invoiced with French VAT when the goods are delivered in France. Your company must therefore register for VAT in France and file VAT returns to declare and pay the VAT collected on sales, net of VAT paid on purchases in France.
- Sales to private individuals (B2C)
These sales must be invoiced with French VAT. Your company must therefore register for VAT in France and file VAT returns to declare and pay the VAT collected on sales, net of VAT paid on purchases in France.
WHAT CAN WE DO FOR YOU ?
ASSESS THE VAT OBLIGATIONS resulting from the transactions you make in France.
APPLY FOR A VAT REGISTRATION NUMBER in France and possibly in other EU member States depending on the case .Learn more
PROVIDE TEMPLATES with a view to gathering the relevant information for the purpose of periodical VAT returns.
REVIEW the purchase and sales INVOICES in support of operations.
CONSISTENCY CHECKS between the purchases and sales amounts.
COMMUNICATE THE identified ERRORS and advise on how to handle possible issues;
LIAISE with suppliers and freight forwarders to track corrective actions
PREPARE THE VAT RETURNSLearn more
FOLLOW ANY PAYMENT of VAT due or receivable by you.
Act as a TAX REPRESENTATIVE on behalf of companies established outside the European Union that has not signed with France an administrative assistance agreement, and as a TAX AGENT for businesses established a EU member State.Learn more
PREPARE AND SUBMIT VAT REFUND CLAIMS on expenses of goods and services used for the business purposeLearn more
Assistance in drafting REPLIES TO REQUESTS FOR INFORMATION FROM THE TAX AUTHORITIES, we are present during tax audits, we ensure liaison with attorneys on the occasion of tax litigations ….
ANNUAL MEETING on the follow- up of the file.
REGULATORY MONITORING and analysis of the consequences on your reporting requirements.
ADVICE or administrative service (issuing invoices, applicable VAT, VAT rates, etc.)
Do not hesitate to contact us for any assistance or question !