VATLive > Blog > Blog Post > France relaxes Postponed Accounting deferred VAT

France relaxes Postponed Accounting deferred VAT

  • Feb 17, 2020 | Richard Asquith

France is to drop the requirements on those entitled to Postponed Accounting from 1 January 2021.

Postponed Accounting allows for the deferral for import VAT, and the elimination of the cash payment at the point of clearance of goods into the EU. It is offered as an easement in many EU member states. Businesses may instead record the import due and reclaimed in their next VAT return, thus cancelling out the tax due without the need for a cash payment or refund.

Currently, France limits its Postponed Accounting to the following businesses:

  • Must have completed at least four import operations in the EU Customs Union in the previous twelve months;
  • Maintain detailed customs and VAT records of imports;
  • No tax or customs infringements in the past twelve months; or
  • Be in good financial standing in past twelve months.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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