TLDR: Since 1 January 2022, the management of VAT on import and upon exit from suspensive arrangements has been transferred to the DGFiP. Non-EU established taxpayers must appoint a tax representative in France, with some exceptions. The representative must be a taxpayer established in France and commit in writing to fulfilling VAT formalities. In case of default, VAT and penalties are due by the recipient of the taxable transaction. A transitional regime extends the ad hoc tax representation until 31 December 2025 for certain operators.
Transfer of competences between administrations
Since 1 January 2022, the declaration, collection and control of VAT applicable to imports and upon exit from suspensive arrangements have been transferred from the DGDDI to the DGFiP. This transfer concerns all taxpayers, whether established in France or not, as well as non-taxable persons who are identified for VAT purposes in France.
Obligation to appoint a tax representative
Taxpayers not established in the European Union (EU) must appoint a tax representative in France to fulfil their VAT obligations. This obligation does not apply to taxpayers established in another EU Member State without an establishment in France, who have neither the obligation nor the option to appoint a tax representative.
Requirements for the tax representative
The tax representative must be a taxpayer established in France. They must commit in writing to fulfilling VAT formalities on behalf of the non-EU established taxpayer. In case of non-compliance with their obligations, VAT and any penalties are due by the recipient of the taxable transaction.
Exceptions to the appointment obligation
The obligation to appoint a tax representative does not apply to:
- persons established in a non-EU State with which France has a mutual assistance agreement of a scope similar to that provided for by Directive 2010/24/EU and Regulation (EU) No 904/2010;
- persons not established in the EU who carry out only transactions under VAT payment suspension or supplies of natural gas, electricity, heat or cold for which the tax is due in France by the acquirer.
Transitional regime
Until 31 December 2025, an exceptional extension of the ad hoc tax representation regime is granted to operators who have initiated a registration procedure in France before this date. The VAT registration numbers of ad hoc tax representatives remain valid until this deadline.
Responsibilities and penalties
In case of non-compliance with obligations by the tax representative, VAT and any penalties are due by the recipient of the taxable transaction. This rule aims to ensure tax payment and prevent abuse.
Scope of the new rules
The new rules apply to all taxpayers, whether established in France or not, as well as to non-taxable persons who are identified for VAT purposes in France. They specifically concern VAT on import and upon exit from suspensive arrangements.