III: Suspensive arrangements

I. - The following transactions are carried out under suspension of payment of value added tax:

1° The supply of goods intended to be placed under one of the following arrangements provided for by the Community regulations in force: customs clearance, warehouses and temporary storage areas, import or export warehouses, inward processing;

2° The supply of goods intended to be placed under one of the following arrangements:

a. The suspensive tax regime;

b. (Repealed)

c. (Repealed)

d. the warehouse for the storage of goods traded on an international futures market, the list of which is set by order of the minister responsible for the budget;

e. the warehouse intended for the joint manufacture of goods by undertakings, at least one of which has no establishment in France, pursuant to an international contract based on the sharing of this manufacture and the undivided ownership of the goods produced between the contracting undertakings.

The authorisation to open a scheme referred to in this 2° is issued by the minister responsible for the budget. This authorisation sets out the main characteristics of the warehouse or suspensive tax regime requested. Orders issued by the Minister may institute simplified procedures and delegate decision-making powers to tax or customs officials;

3° Imports of goods intended to be placed under one of the arrangements mentioned in 2°;

4° Intra-Community acquisitions of goods intended to be placed under one of the arrangements mentioned in 1° and 2°;

5° Provision of services relating to the operations mentioned in 1°, 2°, 3° and 4° ;

6° The supply of goods and services carried out under the arrangements listed in 1° and 2°, with one of the situations mentioned in the said 1° and 2° being maintained, as appropriate;

7° a) The supply of goods placed under the temporary admission arrangements with total exemption from import duties, external transit or internal Community transit, with the same arrangements being maintained;

b) Imports of goods mentioned in 3 of Article 294 and imports of goods from a part of the customs territory of the European Union excluded from its tax territory which would qualify for the temporary admission procedure with total exemption if they were goods from third countries, as well as supplies of such goods, while maintaining the same arrangements or situation ;

c) The supply of services relating to the supplies mentioned in a and b.

II. - 1. The removal of goods from one of the schemes mentioned in I gives rise to the liability to pay the value added tax relating to the transactions for which it was suspended.

The conditions under which the tax which has thus become chargeable is declared and under which its deduction is justified are those laid down for the withdrawal of suspensive arrangements, without prejudice, where this withdrawal also constitutes an import within the meaning of b of 2 of I of article 291, to the obligations relating to the tax due for this import.

The withdrawal of the authorisation referred to in 2° of I also puts an end to the suspension of payment of value added tax. The deduction of this tax is carried out and justified under the same conditions as for that due on withdrawal from the scheme referred to in the first paragraph.

2. a) Where the goods have not been the subject of any supply during their placement under the scheme, the tax must be paid, depending on the case, by one of the persons mentioned below:

1° for the supplies referred to in 1° and 2° of I, the consignee;

2° for the import referred to in 3° of I, the person designated in 2 of article 293 A ;

3° for the intra-Community acquisition referred to in 4° of I, the person designated in 2 bis of Article 283 ;

4° for the supply of services referred to in 5° and 6° of I, the customer.

b) Where the goods have been the subject of one or more supplies referred to in 6° and 7° of I during their placement under the scheme, the tax must be paid by the recipient of the last of these supplies.

c) In the cases referred to in a and b, the person who obtained authorisation for the scheme is jointly and severally liable for payment of the tax.

3. The tax due is, as the case may be:

1° Where the goods have not been supplied during their placement under the scheme, the tax relating to the transaction mentioned in 1°, 2°, 3° or 4° of I, and, where applicable, the tax relating to the services mentioned in 5° and 6° of I ;

2° Where the property has been the subject of one or more of the supplies referred to in 6° and 7° of I during its placement under the scheme, the tax relating to the last of these supplies, plus, where applicable, the tax relating to the services referred to in 5°, 6° and 7° of I, carried out either after this last supply or before this last supply if the customer is the person referred to in b of 2 ;

3° Where the goods represent only part of the goods placed under the scheme, the tax relating, as appropriate, to the transactions referred to in 1° and 2°, for their share relating to the said goods;

4° The tax due in accordance with 1° to 3° is subject to the late payment interest referred to in III of Article 1727 when goods placed under a suspensive tax regime, referred to in a of 2° of I, with a view to their dispatch or export from France, are returned to the national market.

Interest for late payment is calculated from the first day of the month following the month during which the tax due was suspended in accordance with I, until the last day of the month preceding the month during which the goods were removed from the suspensive tax regime.

4. Give rise to a waiver of payment:

1° Where the goods are the subject, directly after removal from the procedure, of an export or an exempt supply pursuant to Article 262 or I of Article 262 ter, the tax that has become chargeable in accordance with 1 of this II;

2° Where the exit from the scheme constitutes an import, within the meaning of b of 2 of I of Article 291, and the goods have not been the subject of any supply for which tax has been suspended in accordance with 1°, 2° and 6° as well as a of 7° of I of this Article, the tax relating to the services included in the taxable amount of the import in accordance with Article 292.

III. - The person who has obtained authorisation to open a scheme referred to in 2° of I must, at the place where the goods are located:

1° Keep a register of stocks and movements of goods, and a register which must show, in particular, for each good, the nature and amount of the transactions carried out, and the names and addresses of suppliers and customers. The supplies of services referred to in I must be specifically indicated in the latter register.

Taxable persons may group together the information contained in the above-mentioned registers in stock records identifying the goods placed under the schemes in question, as well as the date of entry into and exit from the said schemes.

An order of the minister responsible for the budget sets the conditions for keeping the registers and the stock records.

2° Be in possession of duplicate invoices and the various supporting documents relating to the transactions mentioned in I.

IV. - The tax base for the tax due is established by the administration responsible for managing the scheme, including in the event of regularisation and for transactions that are exempt or exempt from payment of the tax.

V. - In addition to the information required to establish the taxable amount, the taxpayer designated in 2 of II shall provide the administration responsible for managing the scheme with:

1° Its company name and the valid identifier provided for in Article 286 ter;

2° Any other information required to calculate the tax or to monitor its application.

It indicates, where applicable, whether the transaction is exempt or exempt from payment of the tax.

An order of the minister responsible for the budget defines the information provided for in 2°.