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Commentary

Exempt supplies and partial exemption

14 France
14 France | Commentary

Exempt supplies and partial exemption

14 France | Commentary

Exempt supplies and partial exemption

French VAT legislation largely follows the Principal VAT Directive and applies exemptions (without credit) to most of the same categories of goods and services (a full list is provided in Appendix 14B).

The effects of exemption are that:

  1.  

    •     goods or services supplied are free of VAT at the point of supply or completion for services; and

  2.  

    •     VAT incurred on costs incurred for the purposes of making these exempt supplies (including overhead costs) is not recoverable.

Businesses carrying out only exempt supplies (without credit) are unable to register for VAT.

Businesses carrying out both taxable

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