France Administrative Court of Montreuil Issues Letter of Jurisprudence on VAT for Vehicle Damage Fees

The French Administrative Court of Montreuil April 3 issued Jurisprudence Letter No. 17, clarifying the application of VAT on administrative processing fees for vehicle damages, discussed in the Montreuil Administrative Court Decision No. 2112744. The taxpayer, a vehicle rental company, received VAT reminders from the Tax Authorities that its administrative processing fees for vehicle damages constituted consideration for a supply of services and were subject to VAT. The taxpayer contested the tax authorities’ analysis, arguing that the fees didn’t constitute consideration for the supply of services if there were no services rendered to vehicle tenants. The tax authorities rejected the ...