France Administrative Supreme Court Clarifies VAT Refund Eligibility for Expenses Incurred Before Incorporation

The French Administrative Supreme Court Nov. 14 issued Decision No. 490867, clarifying VAT refund eligibility for expenses incurred before incorporation. The taxpayer, a civil construction and sale company, sought a VAT refund for credits arising from invoices paid by its future partner company, before its incorporation. The tax authorities granted a partial refund but denied the remainder, citing late deduction claims. On appeal, the Administrative Supreme Court found that: 1) under the General Tax Code, only the company that incurred the VAT and used the goods and services for its taxable operations could claim the refund; 2) civil law mechanisms ...