France Administrative Court Issues Letter of Jurisprudence Clarifying VAT Deduction for Energy-Saving Certificates

The French Administrative Court of Montreuil May 30 issued Jurisprudence Letter No. 18, clarifying the VAT deduction for energy-saving certificates. The taxpayer was an energy company that issued energy-saving certificates. The taxpayer resold surplus certificates acquired through energy-saving operations that it carried out as a delegate of energy savings obligations. The French tax authorities denied the taxpayer’s deduction for VAT charged on invoices related to energy renovation works. Upon review, the Administrative Court found that: 1) the taxpayer was entitled to a discharge of the VAT arrears and additional corporate income tax since the costs constituted necessary work expenses for ...