VAT and intra-community acquisitions (AIC): definition, obligations and risks

1. Legal framework and definition of intra-community acquisitions

An intra-community acquisition (AIC) refers to the operation by which a tangible asset is shipped or transported from another Member State of the European Union to France, and confers on the purchaser the right to dispose of it as an owner (CGI, art. 256 bis).

These transactions are subject to French VAT, the person liable being the purchaser himself via the reverse charge mechanism (CGI, art. 283, 2 bis).

Concrete AIC examples

• A French company buys machines in Italy to equip its site in Lyon: Auto-liquidated French VAT.
• A French SME imports textiles from Spain: it must declare and autoliquidate French VAT.
• A French association buys a photocopier in Germany: if it exceeds the AIC threshold, it becomes liable for VAT.
• A company established in Germany acquires goods in Spain that are delivered directly to its warehouse located in France: Although it is not established in France, it must register for VAT in France and self-liquidate the tax there.

To remember

• AICs concern taxable persons and certain non-taxable legal persons.
• Individuals are only concerned if they purchase new means of transport.
• The place of arrival (France) determines the taxation.

2. Tax base, event giving rise to and liability of VAT

• Tax base: price paid + ancillary taxes (e.g. excises on alcohol or tobacco).
• Generator fact: the acquisition is deemed to have been made on the date of delivery (CGI, art. 269, 1-a).
• Expectability: VAT due on the 15th of the month following the triggering event, or on the date of the invoice if earlier.

Practical example: a company receives a delivery on March 20 from the Netherlands, invoiced on March 25 → VAT due on March 25.

3. Declarations and right to deduct VAT on AICs

AICs must be declared:

• On the CA3 (normal real) or on the adapted forms (CA12, CA12A);
• By mentioning the amount excluding VAT and the VAT due on the specific lines.

The VAT collected is immediately deductible, provided you have a compliant invoice (VAT numbers of the issuer and the customer, price excluding VAT, mandatory information).

Practical example: a French company buys €50,000 worth of goods in Germany. She declares €50,000 in AIC, calculates and autopays the VAT, then simultaneously deducts it.

4. Exemptions and special schemes for AIC

The following are exempt:

• Certain acquisitions of exempt goods in France (prostheses, organs, blood, breast milk);
• Acquisitions of ships, aircraft, gold intended for emission institutes;
• Goods whose importation would be exempt.

Specific cases

• New means of transport: still taxable in France (even for individuals).
• Stocks under a deposit contract: AIC deemed to have been completed only upon withdrawal of the goods.

5. Transactions assimilated to intra-Community acquisitions

The following are assimilated to AICs:

• Transfer of a property to France belonging to a company established in another Member State (movement of stocks, capital goods), subject to exceptions and specific cases (for example, in the case of temporary transfers related to works or commercial demonstrations);
• Receiving imported goods in France via another Member State;
• Armed Forces Assignments stationed in France.

Practical example: a company transfers its stocks from Belgium to its warehouse in Lille. This internal movement is assimilated to an AIC in France.

6. Exemption regime in case of limited thresholds

Article 256 bis, I, 2° of the CGI provides for an exceptional regime for certain intra-community acquisitions made by persons who are not subject to taxation or who benefit from special regimes.

When the total amount of acquisitions made in the European Union does not exceed an overall threshold (currently fixed at €10,000), these transactions may not be subject to VAT in France. However, the persons concerned retain the possibility of voluntarily opting to tax their acquisitions in order to benefit from the general regime and the right to deduct.

Points of vigilance for intra-community acquisitions

• Reverse charge: reporting obligation even without mention on the invoice (EC, July 9, 2024, no. 489688).
• Deadlines: due on the 15th of the following month or invoice date, as the case may be.
• Invoices and proofs: essential to secure the deduction.
• Thresholds applicable to PBRDs: monitor to avoid requalification.
• Double taxation risks: in case of an error at the place of taxation.

Conclusion

Intra-community acquisitions are a central element of European VAT. They involve reverse charge, which facilitates tax management but requires increased vigilance in declarative and documentary matters. A mistake can lead to costly adjustments.

Cyplom's support

Cyplom helps you to secure your intra-community acquisitions and to anticipate tax audits:

• Automated checks: verification of intra-community VAT numbers and monitoring of PBRD thresholds.
• Tax advice: expertise on special regimes (means of transport, stocks, triangular systems).
• Structuring flows
• Management of reporting obligations.

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