Reverse charge of import VAT
Mechanism allowing importers to declare import VAT directly on their VAT declaration instead of paying it at customs.
Reverse charge of import VAT
Reverse charge (or reverse charge) of import VAT is a mechanism by which the importer declares the VAT due on import directly on his VAT declaration (CA3) instead of paying it at customs clearance.
Operation
The importer enters the amount of import VAT simultaneously in collected VAT and deductible VAT on the same CA3 declaration. The operation is therefore cash neutral: there is no VAT advance.
Generalization in France
Since January 1, 2022, reverse charge of import VAT is mandatory and automatic for all identified VAT payers in France. It is no longer necessary to request authorization.
Financial benefit
Before the generalization, importers had to advance VAT (20% of the customs value + duties) and wait for the deduction on the following declaration. For an import of 100,000 EUR, this represented a cash advance of ~24,000 EUR for 1-2 months.
Practical data
The self-liquidated VAT is pre-filled by the administration on the CA3 declaration on the basis of customs data (via the EORI number). The importer must verify and validate the amounts.
Combination with removal credit
Combined with the removal credit (30 days deferment for customs duties), reverse charge allows the importer to no longer advance any sum at the time of customs clearance.