VAT on Imports in France: Legislative Clarifications on the Import Representative
Published in the Official Journal No. 0043 on February 20, 2025, Decree No. 2025-153 of February 18, 2025 clarifies the procedures for appointing an import representative and their declarative obligations.
This decree applies to non-established taxable persons, whether registered for French VAT or not, whose taxable operations in France are limited to imports and exports.
Context and Simplification Introduced by the 2024 Finance Law
The mandatory reverse charge of import VAT, introduced in 2022, required many foreign companies to register for VAT in France to fulfil this purely declarative obligation. To simplify these procedures, the 2024 Finance Law introduced the option to appoint an import representative.
This representative is responsible for fulfilling, on behalf of the foreign company, all VAT-related obligations, including declaration, payment, deduction, refund, and maintaining records related to the delivered goods.
Conditions and Responsibilities of the Import Representative
In effect since January 1, 2025, Article 289 A bis of the French General Tax Code (CGI) outlines the criteria and responsibilities of the import representative. They must:
- Be established and VAT-registered in France for at least one year;
- Have no violations of tax regulations or the Commercial Code in the past three years;
- Have submitted VAT returns in their own name for at least one year;
- Hold a written mandate from the principal (the foreign company);
- Maintain a contractual relationship with the principal, such as a consignment sale, processing, assembly, leasing, warehousing, or transit agreement to another state.
Clarifications Provided by the February 18, 2025 Decree
The decree defines the types of transactions that may be covered by the import representative mechanism. In addition to taxable imports with fully deductible VAT, the mechanism applies to the following non-taxed transactions:
- Exports and equivalent transactions (as per Article 262 of the CGI);
- Operations under customs and tax suspension regimes followed by goods exports;
- Imports subject to one or more deliveries under these same regimes.
Accreditation Procedure for the Import Representative
The import representative must:
- Obtain a unique identification number separate from their current VAT number;
- Submit to the tax authorities information about the represented principals, signed mandates, and a sworn declaration confirming compliance with the eligibility criteria and obligations;
- Regularly update information for each new represented company.
Declarative Obligations of the Import Representative
According to the decree, the import representative must:
- Submit a VAT return covering all operations for the reporting period on behalf of the principals;
- Maintain a register detailing, for each represented taxpayer, information on declared goods (delivery/import date, net amount, VAT rate and amount, applicable exemptions or suspensions, advance payments before delivery);
- Retain this register for three years (until December 31 of year N+3).
Mandate Revocation and Responsibilities
The import representative’s mandate may be revoked by the principal or by the tax authorities if the criteria and obligations are no longer met.
The decree’s provisions came into effect on February 21, 2025.
This measure aims to simplify administrative procedures for non-established companies, allowing them to deregister for VAT in France once their representative has been appointed.
Previously, their commercial partner could be held liable for import VAT payments if the foreign company was not VAT-registered in France. However, as they were not the recipient of the goods, they could not deduct this VAT.
To give advantage of this simplification to foreign company, their French partners must accept the mandate, exposing them to joint liability for tax payments and penalties if VAT deductions, exemptions, or suspensions are later challenged.
If no representative is appointed, foreign businesses will need to maintain their VAT registration in France to comply with their tax obligations.
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