France Administrative Court of Appeal of Versailles Clarifies Input VAT Deductibility, Property Expense Treatment

The French Administrative Court of Appeal of Versailles June 4 issued Decision No. 24VE01416, clarifying the deductibility of expenses and input VAT on shareholder-owned property works. The taxpayer, a company engaged in industrial equipment sales and rental, sought the discharge of additional corporate income tax and VAT after the partial disallowance of renovation expenses on a shareholder-owned registered office building. The taxpayer argued that expenses were solely for business purposes, including employee accommodation and professional meetings. On appeal, the Administrative Court of Appeal of Versailles found that: 1) the expenses were deductible only if incurred in the company’s interest, with ...