Purchase of goods between two member countries of the European Union
An (ICA) is a purchase of goods between companies liable to VAT located in different countries within the European Union (EU).
It is the opposite of an intra-community supply which consists, for a professional, of selling and shipping goods to a country located in another country of the European Union.
Specifically, goods purchased as part of an are invoiced net of tax by the sending company.
After receiving the goods, it is the recipient company that declares and pays the VAT in its own country. For a purchase of goods made by a company in France, the VAT rate applied follows French rules.
In France, the VAT due for an is declared by the company at the same time as the VAT collected for its activities. This is done using the standard CA3 declaration form.
We talk about reverse charging when the company buying the goods is able to deduct the tax due for intra-community acquisitions from the amount of VAT collected. VAT on acquired goods is then due on the 15th of the month following the delivery date.
To deduct the amount of VAT due for an , the company making the purchase and the seller must have an intra-community VAT number.
This unique reference must be acquired before any trading takes place between two companies. The intra-community VAT number of the seller and that of the buyer must appear on the invoice and the VAT declaration completed by the acquiring company.
Those without an intra-community VAT number include people benefitting from an advantageous tax regime such as micro-entrepreneurs or farmers with flat-rate reimbursement of their goods at the VAT rate applicable in the country of departure of the goods.
Focus on the intra-community VAT number
The intra-community VAT number is a unique identifier. In France, it is allocated by the Directorate General for Taxes. This reference comprises a prefix indicating the country (FR for France), a two-digit access key and the company's SIREN number.
In addition to the payment of VAT, a trade of goods declaration is to be filed by companies having carried out more than 460 000 euros of intra-community acquisitions or intra-community deliveries during the previous calendar year.
concerns the 27 member countries of the European Union: Germany, Austria, Belgium, Bulgaria, Cyprus, Croatia, Denmark, Spain, Estonia, Finland, France, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Czech Republic, Romania, Slovakia, Slovenia, Sweden.