France Administrative Court of Appeal of Paris Clarifies VAT, Expense Deductibility Rules for Advertising Firms

The French Administrative Court of Appeal of Paris Nov. 19 issued Decision No. 25PA01723, clarifying VAT and expense deductibility rules for advertising firms. The taxpayer, a limited liability company engaged in advertising and promotional activities in airport lounges, was assessed additional VAT and corporate income tax after an audit. The Administrative Court of Montreuil denied the taxpayer’s discharge request. On appeal, the Administrative Court of Appeal of Paris found that: 1) the services weren’t proven to be outside France, and that the supporting documents demonstrated an applicable 20 percent VAT rate; 2) the photography expenses were disallowed due to lack ...