PARIS: A number of changes to the scope of France’s value-added tax rates and a revision to the nation’s simplified reporting regime became effective from January 1.
First, changes included in Decree No. 2014-1686 remove the requirement to file two duplicate VAT returns under the simplified VAT reporting regime, which allows for the annual submission of returns. VAT payments will now be required semi-annually, rather than quarterly. Newly formed construction sector companies are to be excluded from the simplified reporting regime for the first two years of their operations.
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A number of changes also apply to the scope of France’s VAT rates. From January 1, 2015, until December 31, 2024, the construction of property in less affluent areas of France will be subject to a reduced rate of 5.5 percent on certain conditions.
Following the launch of infringement proceedings by the EU, France has removed the exemption for tickets to sporting events, which will instead be taxed at the 5.5 percent reduced rate.
Imported works of art will newly be subject to the 5.5 percent rate, covering art, collectibles, and antiques as well as sales of original work. The 10 percent rate continues to apply to copyright assignment concerning works of art. The 20 percent rate applies to sales of art by a third party (for example, by an art gallery, merchant, or an intermediary, on certain conditions), and sales of cultural property not considered to be works of art.
