Micro-Entrepreneur with an international dimension? It is still possible to regularize the reverse charge of your import VAT and avoid bad surprises!
Import Reverse Charge
Since January1, 2022, if you are concerned by imports in France, you have from now on the obligation to fall under the real system and this as of the first euro. This real regime can take the form of a monthly or quarterly periodicity (if the annual amount of VAT paid does not exceed 4 000 euros).
It is therefore imperative if you are concerned by this type of transaction to opt for the real regime and to proceed to the regularization of the VAT declarations for the year 2022.
The tax authorities grant a tolerance for the year 2022 to all companies that spontaneously regularize this VAT. The penalty in normal circumstances is 5% of the VAT not self-assessed, plus 0.2% interest for late payment and, if applicable, a surcharge of 40% for deliberate failure to pay.
The tolerance allows the taxpayer to escape this penalty for any spontaneous and punctual regularization during the year 2022. It is therefore imperative to regularize before the end of the year 2022.
Note: these measures also apply to taxpayers who are exempt from VAT (293 B of the CGI).
Example: You are a company with the simplified VAT regime (annual declaration); you practice an active trade (purchase-sale); and you import goods from China to resell them in France. In this case, you have to opt for the real VAT regime in order to self-assess this VAT monthly or quarterly, from the first euro.
Viseeon is able to assist you or your clients with these VAT regularizations or with any VAT registration in France of a foreign company.
Micro-Entrepreneur with an international dimension? It is still possible to regularize the reverse charge of your import VAT and avoid bad surprises!
VAT reverse charge mechanism on imports
Since January 1, 2022, if you are involved in imports, you are now obliged to use the real VAT regime from the first euro. This real regime can take the form of a monthly or quarterly periodicity (if the annual amount of VAT paid does not exceed 4 000 euros).
It is therefore imperative, if you are concerned by this type of transaction to opt for the real VAT regime and to proceed to the regularization of the VAT returns for the year 2022.
The tax administration grants a tolerance for the year 2022 to all companies that would spontaneously regularize this self-assessed VAT. The penalty in normal times amounts to 5% of the VAT not self-assessed, plus 0.2% interest for late payment and, if applicable, a surcharge of 40% for wilful default.
The tolerance allows the taxpayer to escape this penalty for any spontaneous and punctual regularization during the year 2022. It is therefore imperative to regularize before the end of the year 2022.
Note: these measures also apply to taxpayers who are exempted from VAT (293 B of the CGI).
Example : You are a company under the VAT simplified regime (one VAT declaration per year); you practice a trading activity (purchase-sale); and you import goods from China to resell them in France. In this case, you have to opt for the real VAT regime in order to self-assess monthly or quarterly this VAT.
Viseeon is able to assist you or your clients for these VAT regularizations or for any VAT registration in France of a foreign company.
Certified Public Accountant Viseeon
