France Administrative Court of Appeal of Toulouse Clarifies VAT Deductibility, Penalty Rules for Equestrian Businesses

The French Administrative Court of Appeal of Toulouse Dec. 18 issued Decision No. 23TL02252, clarifying VAT deductibility and penalties. The taxpayer, an equestrian business, challenged additional VAT assessed on housing, private air transport, and related expenses. The tax authorities and the Toulouse Administrative Court denied most of the claim. On appeal, the Administrative Court of Appeal of Toulouse found that: 1) VAT on dwellings built within the equestrian center was non-deductible because the housing was provided free to personnel not primarily tasked with surveillance; 2) VAT on private aircraft transport was non-deductible, in part, because the company failed to show ...