France Tax Agency Updates Administrative Doctrine on VAT Rates for Recreational Motorsport Circuits

The French General Directorate of Public Finance Dec. 3 posted updated guidance on the VAT rate applicable to admission fees and related services, for recreational motorsport circuits, including karting circuits. The update states that:1) karting meets the definition of sporting activity and equipment, and therefore the 10 percent reduced VAT rate for admission fees to exhibitions, sites, and installations of a cultural, recreational, educational, or professional nature doesn’t apply; and 2) the fact that a karting track is located indoors or outdoors, has protective barriers made of polyvinyl chloride (PVC) sheets with springs or clearance areas made of grass, sandpit, ...