France Administrative Court of Appeal of Paris Clarifies VAT Refunds for Hours Expired, Cancelled Late

The French Administrative Court of Appeal of Paris Dec. 5 issued Decision No. 24PA01171, clarifying VAT refunds for hours expired or cancelled late. The taxpayer, a company operating a driving lesson booking website, sought a VAT refund on amounts received for hours cancelled late by customers and for expired hours not used within the contract period, arguing that they were compensation and not consideration for services. On appeal, the Administrative Court of Appeal of Paris found that: 1) the amounts retained for hours expired or cancelled late constituted remuneration for a service because the customer’s right to book lessons was ...