What is an intra-community acquisition?

An intra-community acquisition means the purchase of goods made by a French company and subject to VAT from a subject company established in another country of the European Union.

Carrying out intra-community acquisitions requires the French company to follow a reverse charge procedure to pay the VAT due to the French State.

Intra-Community acquisition is sometimes referred to by the acronym AIC .

When a French company sells goods to a company from another country in the European Union, we speak of intra-community delivery .

How to declare an intra-community acquisition?

If the French company makes intra-community acquisitions for an amount greater than 460,000 euros during the calendar year, it must then make a declaration of exchange of goods .

This declaration is monthly and must be made to customs .

In all cases, the French company must automatically pay the VAT linked to the purchase, via the reverse charge procedure.

Intra-community acquisition, VAT and reverse charge

The intra-community acquisition is invoiced duty free by the company which ships the goods. This means that neither French VAT nor VAT of the seller’s country appears on the invoice .

It is therefore up to the French company to pay the VAT due to the French State.

To do this, the French company must apply reverse charge. To do this, the intra-community VAT numbers of the seller and the buyer must appear on the invoice for the goods.

Concretely, once the goods have been received, the French company must complete a VAT return and pay the tax due.

You should know that if the French company is eligible to benefit from a VAT deduction, then you must also indicate the amount of deductible VAT.

Difference between importation and intra-community acquisition

An intra-Community acquisition is to some extent similar to an import since it is a purchase of goods from a company abroad.

However, in practice, while an import refers to the purchase of goods from a company located in a country outside the European Union, an intra-community acquisition refers to a purchase of goods from a company established in another. countries of the European Union.

The difference between an importation and an intra-Community acquisition is therefore purely geographical.


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