REVERSAL OF VAT LIABILITY FOR ALL IN THE EU

Reversal of VAT liability for VAT owed on imported merchandise is now open to all operators located on EU territory.

Article 27 of the 'Blue economy' law (passed on 7th June) makes reversal of VAT liability, owed on imported merchandise as declared on the monthly declaration filed with the Public Finances General Directorate (DGFIP), available to all operators located within the EU.

Up until now, this option was reserved only for European Union companies holding a National Simplified Procedure (PDU) in their name, as well as companies located outside the EU using the services of a customs representative holding a PDU. With Article 27, European companies no longer need a PDU. The requirement is nonetheless maintained for companies outside the EU.

The law now makes it possible for all EU companies to reverse their VAT liability, without any pre-existing conditions to fill. Companies simply need to fill out the specific form, available from Customs services, to request the option. Then, for all imports starting on the 1st of the following month, they benefit from reversal of VAT liability for the next three years. The option is automatically renewed for another three-year period, unless it is cancelled beforehand.

Reversal of VAT liability will begin on 1st October 2016, since its implementation requires making adaptations to Customs' computer system and remote customs clearance procedures, as well as to the Customs reference guide to company identification.

You can, however, send in your form now to Customs offices to choose reversal of VAT liability on imported goods.

If you have any questions about this procedure or if you wish to receive a form, please contact our customs service by email or phone.