SAP Knowledge Base Article - Public

3145361 - ACR VAT declaration (CA3) - Reverse charge mechanism for import from outside EU in SAP S/4HANA Cloud

Symptom

When goods are imported into France from a non-EU country/region in 2022, the reverse charge mechanism has been generalized (that is, no more options can be chosen)  and the CA3 report has been updated.

Amounts related to VAT on imports in the customs declarations will be pre-populated in the VAT declaration.

Environment

SAP S/4HANA Cloud

Resolution

The details of the legal change, can be read here.

When goods from a non-EU country/region are imported into France, VAT was collected by the customs department at the time of customs clearance.

A company may not pay VAT immediately through the reverse charge of import VAT. This procedure was subject to prior authorisation. It no longer pays VAT in support of the customs import declaration, but instead carries the tax amount to the periodic declaration CA3.

Reverse charge mechanism will be generalized (no more option) in 2022 and CA3 report will be adapted  (article 181 PLF 2020)

  • From the customs declarations, amounts related to VAT on imports will be pre-populated in the VAT declaration.
  • It will still be necessary to check the prefilled amounts and to correct the amounts in the event of an error. It will also be necessary to complete the declaration with the non-taxable import VAT bases and the amount of input VAT.
  • This requirement should be taken into account at least for 2022

French government has published the change and code hotfix will be provided with HFC03, content hotfix with HFC04 for CE 2202.

The content (new VAT code for Import reverse charge 20%, account determination and tax box structure) will only be available for new customers implementing the FR solution with HFC04 for CE 2202.

For existing ones a consulting Note has been provided with a description of sample Customizing 3127774 - France VAT Import 2022 with reverse charge functionality for S/4HANA Cloud

See Also

Legal change announced by 2020 Budget proposal (article 181) and is described in following note from DGFIP

Keywords

france, legal change, acr, acr vat declaration, ca3, reverse charge mechanism, vat , KBA , XX-CSC-FR-FI , Financial Accounting , FI-LOC-FI-FR , France , Problem

Product

SAP S/4HANA Cloud all versions