Customs and VAT: two authorities, two distinct obligations
In France, tax obligations related to imports involve two different authorities, which must not be confused:
- The DGDDI (French Customs and Indirect Taxes Directorate): responsible for customs duties, excise duties (alcohol, tobacco, hydrocarbons) and customs clearance of goods entering the territory.
- The DGFiP (French Public Finance Directorate): responsible for VAT, including import VAT following the 2022 reform that transferred collection of this tax to the DGFiP.
The accredited tax representative under Article 289 A of the CGI acts as a representative before the DGFiP for VAT obligations. It is distinct from the approved customs agent (customs representative) who acts before the DGDDI. A foreign company that regularly imports into France may need both professionals.
Import VAT for non-residents
When a foreign company introduces goods from a third country onto French territory, it carries out an importation subject to VAT. The applicable rate is the standard rate of 20% (or the reduced rate for certain products such as foodstuffs or medicines).
Since the January 2022 reform, operators registered for VAT in France can self-assess this VAT directly on their CA3 return. In practice:
- Import VAT is recorded as both output VAT (taxable transactions line) and input VAT (deductible VAT on non-capital goods line).
- If the goods are intended for taxable transactions, the VAT neutralises itself and represents no cost to the company.
- To benefit from this regime, the company must be registered for French VAT at the time of importation.
- Non-EU companies that are not registered will have VAT demanded by customs at the time of clearance, with no possibility of recovery.
| Situation | Import VAT treatment | Tax representative required |
|---|---|---|
| EU company registered in France | Self-assessed on CA3 | No |
| Non-EU company registered (with tax rep.) | Self-assessed on CA3 | Yes (mandatory) |
| Non-EU company not registered | VAT demanded by customs | Not applicable (non-compliant) |
Excise duties: alcohol, tobacco, energy products
Excise duties are indirect taxes levied on the production, holding and movement of certain products: alcoholic beverages, manufactured tobacco products, energy products (fuels, gas) and electricity. They fall under the DGDDI and are governed by rules separate from VAT.
For a non-resident introducing these products into France, the main obligations are:
- Alcohol and alcoholic beverages: mandatory appointment of an approved warehousekeeper or registered consignee with customs, who handles the formalities and payment of excise duties.
- Tobacco products: strict monopoly regime, access limited to approved operators.
- Hydrocarbons and energy: duty suspension warehouse regime managed by DGDDI-approved operators.
Practical steps for regularly importing into France
For a non-EU foreign company that regularly imports goods into France, the compliance process comprises several steps:
- Step 1: Appoint a DGFiP-accredited tax representative for VAT obligations (Article 289 A CGI).
- Step 2: The tax representative carries out VAT registration with the SIEE (Foreign Business Tax Office).
- Step 3: Appoint an approved customs agent for customs formalities and management of customs duties.
- Step 4: If products are subject to excise duties, appoint an approved warehousekeeper or registered consignee with the DGDDI.
- Step 5: Set up monthly or quarterly VAT return flows with the tax representative.
Consult our list of DGFiP-accredited tax representatives to find a professional who will guide you through your import and VAT compliance procedures.