France Administrative Court of Appeal of Marseille Clarifies VAT on Lease, Sale of Undeveloped Land

The French Administrative Court of Appeal of Marseille Feb. 20 issued Decision No. 24MA01119, clarifying the VAT treatment of rental income from undeveloped land and the resale of the land. The taxpayer, a real estate company, sought to discharge additional VAT assessed on rental income and the sale of land. The taxpayer claimed the rental was exempt from VAT, the amounts received were financial advances, and the resale was a transfer by inheritance. On appeal, the Administrative Court of Appeal of Marseille held that: 1) the rental of the undeveloped land was subject to VAT, because the land was used ...