Reverse charge of import VAT
Mechanism allowing import VAT to be reported on the tax declaration instead of paying it at customs.
Reverse charge of import VAT
Reverse charge (or reverse charge) allows the importer not to pay VAT at the time of customs clearance. VAT is reported directly on the VAT declaration (CA3 in France).
Main advantage
The company no longer has to advance import VAT, which represents a considerable cash flow gain.
Generalization in France
Since January 1, 2022, the reverse charge for import VAT is mandatory and automatic for all companies identified for VAT in France that carry out imports.
Operation
The VAT due is declared on the “VAT due on imports” line of the CA3 declaration, and simultaneously deducted (if the right to deduction is total) on the same declaration.
Practical impact
This mechanism aligns the treatment of import VAT with that of intra-community acquisitions and simplifies the financial management of importers.