UK exporters importing goods into France DDP in their own name may need to register for French VAT
 
Members may have read about changes coming into effect in the French import VAT regime next year. Our understanding is that these will affect only a limited number of art and antiques businesses. From 1 January 2022 VAT on imports into France where the importer is a business will no longer be collected by the customs authorities but will be automatically reverse-charged on the importer’s French VAT returns. This means it will not be possible for a business to be the importer of record for goods into France without that business having a valid French VAT number and filing VAT declarations. Foreign companies can register for VAT in France even if they are not established in France or elsewhere in the EU.
 
At present it appears that these changes are unlikely to impact many members because they will not apply in the following circumstances:
  • If you are exporting to a business in France which already has its own French VAT number 
  • If you are sending goods to private buyers where you have agreed that the buyer is responsible for paying the import VAT, since the VAT will continue to be collected through the customs agent
  • If you do the major art fairs in France the change will not affect you, since special bond arrangements are used for these fairs.
  • If you are importing into France under TA or under other temporary import schemes
The changes could possibly affect members in the following limited circumstances:
  • If the goods are being shipped to a French business on a Delivery Duty Paid (DDP) basis, i.e. where the seller/exporter is paying the import VAT or duties themselves.  This means that the seller is both the exporter from the UK and the importer into France. I understand that DDP is not the common basis of shipment for sales of antiques/art, and in any case there are other ways to ensure the customer does not suffer the cost of import VAT, such as by reducing the sales price to take account of the import VAT the customer will have to pay.   
  • If for some other reason you need your UK business to be the importer of record for goods transferred from the UK to France. This might apply where you are taking part in a fair whose organiser has not made special bond arrangements.
If the name of a private buyer sounds as if it is a company/business, this could raise questions from French Customs, who might request a French VAT number before processing the shipment. Consequently, if a sale is being made to a French private buyer, members are advised not to associate the buyer with any business name on the customs paperwork.
 
The UK's Department for International Trade French section (DIT France) has partnered with RM Boulanger, a company specialised in cross-border formalities and tax matters, and held a webinar on these changes which you can watch here, although it is of limited applicability to our sector.  If members conclude that they may wish to register for VAT in France then they may wish to obtain RM Boulanger's help with this.