Box A4 of the VAT return: Important points to keep in mind with imports

General presentation of box A4

In box A4, you must report the amount excluding VAT Of taxable imports in France, with the exception of imports of petroleum products. Imports concern introduction of goods from a territory outside the European Union on French territory.

Since the January 1, 2022, the amount shown in box A4 is preset automatically based on information provided by customs authorities, generally beginning on the 15th of each month. This amount includes all imports for which your company was designated as an importer during the previous month.

The specificities to take into account

Potential discrepancies between the pre-filled amount and your internal data

It is crucial to check the possible differences between the amount pre-filled by the administration and the amount that comes from your own accounting systems. Several factors can explain these differences:

• The quantum : Your internal calculations are often based on invoices from your suppliers, while the pre-filled amount also includes ancillary costs such as insurance, transport, etc., which increase the tax base.
• Temporality : The pre-filled amount corresponds to the imports made during the month, while your data can be saved on the date the invoices were received, thus creating a time lag.
• The risk of error : Improperly handled transactions, whether by your customs representative or within your systems, can lead to inaccuracies. This concerns in particular goods in return or suspensive regimes.

Importance of regular reconciliations

Even if you choose to keep the pre-filled amount, you should be able to justify this amount in terms of nature and quantum. It is therefore recommended to carry out regular reconciliations to ensure the conformity of the declared data.

The expert's point of view

How do I reverse charge import VAT?

1. Report in box A4 : Indicate the amount excluding VAT of imports in box A4 of your VAT return.
2. Report in box B : Depending on the applicable VAT rate, enter this amount in box B, between lines I1 to I6, to collect VAT on these imports. Note that these lines are generally pre-filled with customs data.
3. Deduction in box 20 : Indicate the amount of deductible VAT in box 20 of the VAT return to deduct the VAT on these imports.

Financial impact

• Company recovering 100% of VAT : This mechanism is neutral. For example, for an import of €100 excluding VAT:
  • You collect €20 in VAT.
  • You deduct €20 in VAT.
  • The balance is zero.

Obligations and sanctions

• Reverse charge obligation : Failure to reverse charge may expose you to 5% penalty on the amount of VAT that has not been automatically paid.
• Recommendation : It is essential to follow this procedure scrupulously to avoid any risk of tax adjustment.

Case of companies that partially recover VAT

• Situation : If your company does not recover all the VAT on its purchases, the reverse charge will result in partial or total non-deductible VAT.
• Consequence : Part of the VAT collected cannot be deducted, thus impacting your cash flow.

Important points to keep in mind

• Verify pre-filled amounts : Ensure that the data provided by the administration corresponds to your actual operations.
• Check the tax base : Correctly integrate ancillary costs (transport, insurance) that increase the tax base.
• Respect the due dates : Take into account the actual date of the imports for your declaration.
• Use additional resources : Our detailed video on box A4 provides you with additional light.
• Be accompanied : A chartered accountant or tax lawyer can help you secure your VAT returns.

Conclusion

Box A4 of the CA3 VAT return is a crucial step for businesses importing from countries outside the EU. By understanding the specificities associated with this box and by carrying out the necessary verifications, you ensure the tax compliance of your business. Do not hesitate to consult our dedicated video to deepen these points and to ask a professional to assist you in this process.