New calendar for the e-invoicing and e-reporting reform
A couple of months ago, the e-invoicing and e-reporting reform was still foreseen to progressively enter into force as from 1 July 2024, with a timetable extending until 1 January 2026.
Taking note of the difficulties faced by the businesses to comply with the deadlines, the French Parliament included in the Finance Bill for 2024 a new calendar as follow:
1. As from 1 September 2026:
2. As from 1 September 2027, medium and small-sized companies must be able to issue their invoice to French B2B counterparts using the reform’s formats and to transmit transactions and payments data to the French tax administration.
Official comments published by tax authorities on bundled supplies
Since 31 December 2020, article 257 ter of the French tax code provides rules governing the VAT treatment of bundled transactions.
On 23 August 2023, the French tax authorities (“FTA”) published their official guidelines on these rules (BOI-TVA-CHAMP-60 dated 23/08/2023). In respect to the financial sector, these comments notably cover the specific topic of banking and financial services provided along with the sale of goods and (other) services (BOI-TVA-CHAMP-60-40 dated 23/08/2023).
In these comments, the FTA specify that, based on the CJEU case law, they will consider as ancillary to the main supply of goods/services (and thus subject to the latter’s VAT treatment):
In addition, the FTA will consider that a consumer credit bearing interest cannot be considered as ancillary to another transaction and must, in any case, be considered as a unique (VAT exempt) supply.
Furthermore, the FTA rely on the CJEU case law to assume that lease purchase agreements must be considered as unique (VAT taxable) supplies, unless the terms and financial conditions dissociate the leasing and credit operations.
The FTA also recall that in principle, when it comes to bundled (financial) transactions, the VAT treatment of such transactions must be analyzed on a case-by-case basis.
VAT update for the art market
To date, the French VAT regime of transactions on works of art provides two combinable advantages:
However, the Directive no. 2022/542 dated 5 April 2022 on VAT rates provides that it is not possible anymore (as from 1st January 2025) to combine the above-mentioned provisions. EU Members States must choose between those.
After discussions with representatives of the sector, the French legislator decided, in the Finance Bill for 2024, to:
This specific reform will enter in force as from 1 January 2025 and will be of interest for all businesses involved in works of art (investors, dealers, etc.).
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