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.