Commentary

Option to tax

14 France
14 France | Commentary

Option to tax

14 France | Commentary

Option to tax

Companies which carry out certain VAT-exempt activities (or activities outside the scope of VAT in the case of public bodies) may voluntarily exercise an option to subject these activities to VAT in France. It is not possible to exercise an option to tax unless it relates to supplies expressly provided by law.

As a result of the option for taxation, the business will be able to recover the input VAT incurred on the goods or services connected with making the supply subject to the option to tax.

Exercising the option to tax for VAT may also exempt the business

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