France Administrative Court of Appeal of Paris Clarifies VAT on Advance Payments for Residential Works

The French Administrative Court of Appeal of Paris Oct. 29 issued Decision No. 24PA01195, clarifying the VAT treatment of advance payments for residential maintenance works. The taxpayer, a property dealer engaged in real estate and property works, sought to discharge additional VAT, late payment interest, and penalties assessed for advance payments received. The Paris Administrative Court denied the discharge request. On appeal, the Administrative Court of Appeal of Paris found that: 1) the taxpayer wasn’t entitled to apply the reduced 10 percent VAT rate on advance payments without possessing the required certificate from the lessee at the time of payment; ...