What changes with the Conseil d’Etat ruling of 12 November 2025
Furnished residential rentals are normally exempt from VAT under Article 261 D(4) of the French Tax Code, whether they are long term, seasonal or short term.
However, some rentals can fall within the scope of VAT when the services provided start to resemble hotel or aparthotel services.
According to the updated BOFiP guidance of 26 March 2025, a business is considered to be providing aparthotel services for stays of fewer than 30 nights if it offers a furnished unit together with at least three of the following services: breakfast, regular cleaning, provision and renewal of linen, and guest reception services.
The Conseil d’État’s ruling of 12 November 2025 (no. 498267), issued following a request from the professional association for furnished rental providers, clarifies how these criteria should be interpreted.
The Court cancelled the BOFiP presumption that a single cleaning before arrival or the provision of one set of linen is sufficient for short stays of under one week. The assessment must now be made case by case: operators must show that they genuinely provide regular cleaning and linen renewal appropriate to the length of the stay.
On guest reception, the Conseil d’État confirmed that digital tools such as online check in, mobile apps or secure key boxes can qualify, provided they offer real support to guests: welcoming them, giving them information and guiding them. A key box on its own is not enough.
For operators, the ruling means paying closer attention to how services are organised and documented. Services must be real, effective and proportionate to the stay. Keeping clear evidence of how they are delivered is essential to avoid a VAT reclassification.
