France Tax Agency Clarifies VAT Rules on Chain Sales

The French General Directorate of Public Finance June 29 clarified the VAT rules applicable to chain sales. The tax agency explained that: 1) the VAT base for the supply of goods in a closed chain is the price invoiced by the first seller to the last buyer; 2) the amount invoiced for intermediate operations of the closed and unclosed sectors is subject to VAT; and 3) the compensation paid by the seller to an injured buyer, paid because of the non-performance of the contract, isn’t subject to VAT. [France, General Directorate of Public Finance, 06/29/22]

Reference:
View Announcement. View ...