France Administrative Court of Appeal of Toulouse Clarifies VAT, Corporate Income Tax for Media Services

The French Administrative Court of Appeal of Toulouse Feb. 12 issued Decision No. 24TL01152, clarifying the tax treatment of VAT and corporate income tax for media services. The taxpayer, a limited liability company engaged in literary communication and publishing, was assessed additional VAT and corporate income tax following an audit covering 2017-2018. The taxpayer argued that its promotional and editorial services were ancillary to book sales and should benefit from the reduced 5.5 percent VAT rate, and that it didn’t opt for corporate income tax. The Montpellier Administrative Court disagreed and denied the taxpayer’s specified request. On appeal, the Administrative ...