The Tax Minute

Every week, the Tax minute with our partner Aurélie Maudhuy !

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• VAT and imports of goods in France: new status of the import agent

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Since January 1, 2022, companies registered for VAT in France have the obligation to declare and pay the amounts of VAT on the importation of goods in free circulation for which they are liable on their CA3 turnover declaration. Import VAT is therefore collected and deducted simultaneously on the same turnover declaration.

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On the part relating to the VAT deduction, a company can deduct import VAT under two conditions:

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- it is liable for this VAT;

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- the imported good is used for the purposes of its taxable transactions and these transactions are eligible for deduction. With some exceptions, it is in principle necessary for the company to own the property.

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This rule applies both to businesses established in France and outside France.

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When a foreign company carries out purchases and/or sales transactions in France, it must comply with a certain number of tax obligations.

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Since the January 1, 2025, a foreign company that is not identified for VAT in France may appoint an import agent under certain conditions provided for in article 289 A Bis of the General Tax Code, who fulfills in its name and on its behalf the obligations of the company.

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The Decree No. 2025-153 of 18 February 2025 provides details on the nature of the transactions that may be subject to the import agent mechanism, on the conditions for identifying the agent and on the reporting and record-keeping procedures that the agent must apply.

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As such, he must obtain from the tax service to which he reports, an individual VAT identification number specific to this activity as a mandatary and dedicated to the declaration, payment, deduction, reimbursement and record keeping for his clients (foreign companies). This number must be different from its own individual VAT identification number used to ensure its obligations with respect to its economic activity without a mandatary.

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In addition to the imports of goods in free circulation referred to above, the import agent mechanism applies mainly to exports, to transactions carried out under customs or fiscal procedures resulting in the export of goods or to imports that have been the subject of one or more deliveries under customs or fiscal procedures.

• ‍Suspension of the payment of VAT for goods registered under a special regime: extension to certain operations in the aeronautical sector

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Special customs regimes have the effect of deferring imports for VAT purposes: external transit, storage, inward processing and temporary admission in total exemption from customs duties.

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For goods registered under such a special regime upon arrival on French territory, the payment of VAT is suspended in accordance with the provisions of I of article 277A of the General Tax Code.

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Once they leave this regime, a good can be put into free circulation, re-exported or assigned to a new specific customs regime.

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THEArticle 40 of the 2025 Finance Act No. 2025-127 of 14 February 2025 extends the system for suspending the payment of VAT to supplies and imports of goods intended to be placed under a new simplified clearance regime in the aeronautical sector, as well as to the provision of services relating to these supplies and imports.

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For goods in the aeronautical sector placed under the IM/EX inward processing regime or used for the manufacture, repair, modification or transformation of goods placed under this inward processing regime, simplified clearance in the aeronautical sector refers to the situation between the date of the settlement of this inward processing regime and that of the delivery of aircraft, spacecraft and their equipment.

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Aeronautical activity is characterized in particular by typical import flows of parts intended to be mounted on aircraft, parts for the manufacture of larger assemblies or even defective parts to be repaired, for which the importing company is not necessarily the owner of these parts.

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This new simplified settlement system should make it possible to suspend the payment of VAT for goods from the aeronautical sector imported or delivered by a company, without any condition of ownership of these goods. This suspension would not require a prior request from the administration.

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Exiting the simplified clearance regime for the aeronautical sector is subject to the same rules as for exits from specific customs regimes for the deferral of imports. This new system should therefore facilitate the management of the flow of imported or delivered aeronautical parts that must ultimately be re-exported outside the EU, all without having to declare and pay French import VAT.

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According to the text of the law, these new provisions will come into force as of July 1, 2025.