Will EORI Clearance Number Expire After French VAT Deregistration?

Will the EORI Number Become Invalid After VAT Deregistration in France?

Recently, the French tax authorities issued an announcement addressing the issue of businesses deregistering for VAT, reminding companies that the EORI Economic Operator Registration and Identification number may also become invalid after VAT deregistration. The EORI number is one of the essential documents used by customs for clearance purposes. If it becomes invalid, it may lead to customs delays or even rejection. This article will explore this issue in detail.

1. VAT and EORI Numbers

VAT Value Added Tax is a type of tax that must be paid when goods are sold or services are provided within France. Every company registered in France has a unique VAT number, similar to a personal identification number.

The EORI number is a registration number assigned by national tax authorities within the European Economic Area EEA to identify businesses involved in customs-related activities. It serves as a key identifier for companies conducting import/export operations.

2. VAT Deregistration and the EORI Number

When a company deregisters its VAT, it often also applies to cancel its EORI number. Once the VAT deregistration request is approved, the associated EORI number typically becomes invalid as well.

This occurs because the EORI number is directly linked to the VAT number. When the VAT number is canceled, the corresponding EORI number is also revoked.

3. Risks of Clearance Delays or Rejection

After applying for VAT deregistration, companies should promptly notify all relevant parties, including customs authorities and logistics providers, to ensure timely updates to their records. Failure to update information in a timely manner may result in customs clearance delays or rejections.

Additionally, companies should ensure that all documents and information provided during customs clearance are accurate and up-to-date to avoid complications caused by an expired EORI number.

4. Recommendations and Strategies

To prevent issues arising from the invalidation of the EORI number due to VAT deregistration, businesses are advised to carefully evaluate the risks and benefits before proceeding with deregistration.

For companies engaged in import or export activities, using the most current information during customs clearance is crucial. To minimize potential delays and losses, businesses should maintain close communication with relevant authorities and stay updated on the latest announcements and regulations issued by the tax department.

When handling the relationship between VAT deregistration and EORI numbers, companies should remain vigilant and strictly follow applicable laws and regulations. By planning ahead and updating information promptly, businesses can reduce potential risks and ensure smooth customs procedures.

This article is for informational purposes only. For more accurate legal advice, please consult relevant tax law resources or contact a professional attorney.