Global Daily Tax News, France Issues Guidance On Recent VAT Law Amendments, (Aug 5, 2024)

The French tax agency has released guidance on three value-added tax amendments introduced through the Finance Act for 2024.

First, the guidance confirms that despite the transfer of competence regarding the administration of import value-added tax from the General Directorate of Customs and Indirect Taxes (DGDDI) to the General Directorate of Public Finances (DGFiP), certain import transactions by taxable persons in specific situations may continue to be declared and paid through the DGDDI's services. The guidance confirms that this is the case for verbal declarations and for import VAT in relation to those participating in fairs or exhibitions.

Second, the guidance confirms changes regarding the liability for VAT on e-commerce consignments. The guidance states, on account of recent developments in e-commerce practices, certain taxable resellers who make distance sales of imported goods are now designated as liable for VAT due on the importation of goods when a discrepancy is found between the tax base declared on importation and the actual commercial value of the imported goods.

Further, it says, with regard to flows between taxable persons or when the importation is carried out in the absence of any delivery, and in order to remove any ambiguity between tax and customs terminology, the rules on VAT liability on importation are rewritten with direct reference to the concepts of the Union Customs Code.

Last, the guidance says the rules determining the location of deliveries of tangible movable property have been supplemented to take into account the aforementioned developments.