France transferred management and collection of import VAT from customs authorities to the Direction générale des Finances publiques (DGFiP) effective 1 January 2022, integrating import VAT reporting into standard VAT returns.
Under the new system, VAT-registered businesses must declare and pay import VAT directly through their standard VAT returns (CA3 monthly or quarterly) rather than through customs declarations. This mandatory change applies to all VAT-registered taxpayers and allows simultaneous collection and deduction of import VAT on the same return, eliminating the previous cash flow burden of advance payments.
The reform represents a significant administrative shift in France's VAT collection system, moving import VAT from the customs framework into the standard VAT compliance process. This aligns France with practices in other EU member states that have integrated import VAT into domestic VAT reporting systems to reduce administrative burden and improve cash flow for businesses.
