Bringing goods into the European Union from a non-EU country is first a customs operation, and only then a VAT operation. Three topics come together: identifying your company with customs (the EORI number), any customs duties and import VAT.
If you are a foreign company importing into France, here are the steps to plan ahead, how import VAT is treated and the mistakes that prove costly.
The EORI number: the first prerequisite
The EORI number (Economic Operators Registration and Identification) is the single identifier of economic operators in the European Union for their dealings with non-EU countries. It is required to lodge a customs declaration, whether you file it yourself or your freight forwarder does.
A company not established in the EU applies for it in the first Member State where it carries out customs activity. An EORI number is not a VAT number: the two identifiers are separate and do not replace each other.
Customs duties: what do they depend on?
Customs duties are not always payable and the amount varies. They depend on three elements:
- the nature of the goods, assessed through their tariff classification;
- their origin;
- their customs value.
An incorrect tariff classification or customs value leads to insufficient duties and, sooner or later, to reassessments. This is the first item to secure.
Import VAT
Import VAT is due when the goods enter the territory, on the customs value plus duties and ancillary costs. Its treatment varies: it is either paid at clearance or, under conditions, declared directly on the VAT return (reverse charge).
When VAT is paid at customs, it is then deductible on the VAT return under the usual conditions. When it is reverse-charged, it is both collected and deducted on the same return, with no cash-flow advance. To understand the mechanism, see our page on VAT reverse charge.
The steps of an import
Plan the whole chain before shipping:
| Item | Who handles it? |
|---|---|
| EORI number | The importer, with customs |
| Customs declaration | The importer or its forwarder acting as customs representative |
| French VAT number | The importer, through a VAT registration if needed |
| Proof of origin and value | The importer and its supplier |
Points to watch
An incorrect tariff classification or customs value can lead to insufficient duties and VAT, with later reassessments and late-payment interest and surcharges. Have your customs declarations checked before the first shipments, especially if you use several forwarders.
- Check that the EORI is active and correctly entered.
- Keep the customs declarations: they support the VAT deduction.
- Anticipate the cash-flow impact when VAT is paid at clearance.
- Distinguish imports, exports outside the EU and trade between Member States.
How Hanoutax can help
Hanoutax acts as a French VAT agent (mandataire fiscal) for European companies. We support you on the tax side of an import: VAT registration in France where needed, VAT returns, import VAT treatment and reverse charge. The customs side itself (classification, customs representation) is for your forwarder or a customs broker.
FAQ
What is an EORI number?
It is the single identifier of EU economic operators for their dealings with non-EU countries. It is needed to lodge a customs declaration. It is separate from the VAT number: having one does not exempt you from applying for the other when your activity requires it.
Can a non-EU company get an EORI?
Yes. A company not established in the EU applies for it in the first Member State where it carries out customs activity. It is advisable to do this before the first shipment, to avoid any blockage at clearance.
What is import VAT calculated on?
It is calculated on the customs value of the goods, plus customs duties and ancillary costs. It is due when the goods enter the territory. An incorrect classification or customs value therefore also distorts the VAT.
Can import VAT be recovered?
When VAT is paid at customs, it is deductible on the VAT return under the usual conditions, with customs documents as support. When it is reverse-charged, it is collected and deducted on the same return, with no cash-flow advance.
What mistakes should I avoid on a first import?
The most frequent are an incorrect tariff classification, an inaccurate customs value and a lack of coordination between forwarders. Plan the whole chain before shipping: EORI, customs representative, French VAT number, proof of origin and value.
Planning an import into France? Let’s talk.
Related reading
Informational content, not legal advice. The rules that apply depend on your situation.
