France Administrative Court of Appeal of Paris Clarifies VAT Refund Rules for Nonresident EU Companies

The French Administrative Court of Appeal of Paris Jan. 30 issued Decision No. 24PA02073, clarifying VAT refund rules for nonresident EU companies that incur VAT in France. The taxpayer, a German motorsport company, sought a VAT refund for September 2020 after incurring French VAT on racing-related expenses and argued it should be treated as a French VAT-liable business. On appeal, the Administrative Court of Appeal of Paris found that: 1) the taxpayer couldn’t use the ordinary French VAT deduction system because it carried out no taxable operations in France and its services to Porsche were taxable in Germany; 2) the ...