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MONEY

EXPLAINED: The new rules on VAT on parcels in France

Since July 1st, people receiving packages shipped to France from outside the EU - which, of course, now includes the UK - may have noticed some surprising new charges.

EXPLAINED: The new rules on VAT on parcels in France
Photo: Stephane du Sakatin/AFP

This is because of new EU regulations, which mean you now have to pay Value Added Tax (VAT or TVA in France) to receive even small low-value parcels shipped from outside the bloc. 

What exactly is going on?

Until June 30th, 2021, packages imported into the EU with a value of less than €22 were exempt from import VAT charges. This exemption was abolished on July 1st, meaning that VAT is now due on all goods imported into the bloc, applied from the very first euro. 

The EU says the change was made to combat fraud via the widespread under-reporting of the value of imported goods in order to dodge the tax, as well as to make things fairer for companies trading within the EU.

It was supposed to come into effect from the start of January but was pushed back to July because of pandemic-related delays.

The rule is just one part of a raft of reforms designed to update the EU’s systems and bring them in line with 21st-century global trading practices, where international e-commerce accounts for a large chunk of the market.

Does this have anything to do with Brexit?

It doesn’t have anything to do with Brexit directly, but of course if the UK had not left the EU then these charges would not apply to packages sent between France and the UK, since that would have been an inter-EU delivery.

But the abolition of the €22 ‘low value consignment’ threshold that kicked in from the beginning of July is an EU-wide regulation which applies to imports from every non-EU country – the USA, Canada, Australia, India and the UK to name but a few.

How is the VAT charge calculated? Does it vary depending on where the package is sent from?

The VAT rate you will be charged is the one applicable in the country where the items are delivered. This means that if, for example, you’re receiving a package shipped from the UK to France, you’ll pay the French VAT rate.

Each EU country has its own VAT rates for different items. 

VAT in mainland France is typically set at 20 percent, with special reductions to 5.5 percent for various food items and for certain books, as well as a super-reduced rate of 2.1 percent for certain pharmaceuticals. 

What about gifts sent from outside the EU? 

The new changes officially concern only commercial goods.

According to the EU’s taxation and customs union, gifts and personal packages valued at less than €45 remain VAT-exempt, although some people have reported receiving unexpected charges for personal packages despite this regulation.

Bear in mind, however, that anything sent from outside the EU – even a little birthday gift or package from home – needs a customs declaration form attacked. Certainly items including foodstuffs like chocolate are banned. Full details here.

How do I pay these fees in France?

According to La Poste, you can pay any VAT,  customs duties, and customs clearance fees either before or upon delivery. 

Paying online in advance via La Poste’s secure site enables you to access reduced customs clearance fees. To do this, you’ll need a consignment number or delivery notice. 

You can also pay the fees by cheque or cash upon receipt of the package, or by card, cheque, or cash in your local post office.

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For members

DRIVING IN FRANCE

Meet France’s tiny cars that you don’t need a licence to drive

They're small and don't go very fast, but they're also cheap, easy to park and can be driven by teenagers and people who don't have a driving licence - welcome to the world of France's 'voitures sans permis'.

Meet France's tiny cars that you don't need a licence to drive

The range of ‘cars’ known as voitures sans permis have gained something of a following among young people living in towns and cities – in part because it’s legal to drive them from the age of 14, and you don’t need a full driving licence.

Really.

These are small, lightweight vehicles that are subject to strict restrictions on size and speed, and cannot be used on motorways or high-speed roads that, as the title suggests does not need the driver to hold a full licence.

The first thing you’ll likely notice about them is that they are small – about half the size of a regular car.

It’s probably easiest to think of them as a hybrid between small motorcycles and standard cars.

They used to be quite big in rural France, but because they have a roof, and windows, and four wheels, they are considered safer than mopeds for young people looking to get around in urban environments, so you are likely to see them taking up car parking spaces in and around lycées, for example.

They’re not just for kids though, an increasing number of city-dwellers who just need a runaround for local trips are attracted to them because of their price and also because they’re easy to park (being so tiny).

Although they’re called ‘no licence’ vehicles, you do in fact need some paperwork.

The driver of a voiture sans permis must:

  • Be at least 14 years old;
  • Hold an AM licence (which is still commonly called a brevet de sécurité routière or BSR) if they were born after January 1st, 1988. Anyone born before this date does not need to hold this licence;
  • Cannot drive if their driving licence has been suspended by the courts;
  • Cannot take more than one passenger in their licence-free car;
  • Cannot travel on motorways, fast main roads or bypasses.

What’s an AM licence?

As we’ve already mentioned, many people – particularly older road users in France – will refer to this as a BSR, which was the qualification that allowed people to ride a motorcycle with an engine size of 50cm³ or smaller, or a licence-free car.

The newer AM licence does that, and also permits the holder to ride a light quadricycle (quad bike) with the same engine size limits. 

Getting this licence costs between €150 and €400 and involves theoretical and practical aspects. Applicants must pass a theory exam and undertake eight hours of driving – three of which must be in traffic with an instructor.

Once awarded, an AM licence is valid for 15 years across EU countries. Remember, only motorists born on or after January 1st, 1988, need to have undertaken the requisite training to drive a vehicle sans permis.

So what cars can you drive?

Technically, they’re not cars, per se. They’re quadricycles, or four-wheel mopeds.

And they have technical limitations. Since January 1st, 2017, these vehicles are limited to an empty mass of 425kg, must have a small fuel engine or an electric engine limited to 6 kW, and be able to carry no more than two people, including the driver.

Their maximum speed is limited to 45km/h, and they cannot be more than three metres in length.

There are a number of makes and models out there. Among the major manufacturers, Citroen make the electric AMI, and Renault the Twizy, both of which are classed as vehicles sans permis

Aixam and Ligier each make a range of vehicles that you don’t need a full licence to drive. 

Watch out, too, for the Chatenet and the Italian Casalini.

So they’re not just a France thing?

Not at all. You’ll see them on roads in Germany, Portugal, Italy and Belgium.

Okay, how much?

The AMI is around €7,990 to buy – though you can arrange a location longue durée deal from €49.99 per month (which includes the government financial aid available for all types of electric car leasing).

Otherwise, prices tend to range from €10,000 to more than €16,000 – and you’ll still need insurance. So, not necessarily cheap.

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