The French government’s 2027 Finance Bill, tabled on 1 October 2026, includes several VAT measures. For now, these are only proposals, and Parliament still has to debate and vote on them. TV services: reduced 10% rate to go The Bill proposes scrapping the 10% rate that currently applies to TV services. The aim is to...
On 9 September 2026, the French Tax Authorities set out how businesses should justify applying the reduced VAT rates of 10% and 5.5% to renovation work. Since the 2025 Finance Act, customers no longer have to provide a separate certificate to the contractor as a matter of course. Instead, they simply confirm on the quote...
Since 11 June 2026, foreign businesses with no establishment in Morocco that supply digital services to non-taxable customers based there have had to register with the Moroccan Tax Authorities. They need to obtain a tax identification number, then file returns and pay the VAT due through the online portal set up by the Directorate General...
According to a judgment handed down by the General Court of the European Union – Judgment of 9 September 2026, Case T-614/25, when goods are sold several times in succession but only move once between Member States, the question of which sale the transport should be linked to was revisited by the Court. When goods...
The French Tax Authorities updated their official guidance (BOI-TVA-GEO-20-20) on 2 September 2026. The update covers two areas: the exemption for certain transport services and VAT-exempt imports into La Réunion. Air transport now exempt Article 295-1-1° of the French Tax Code exempts certain transport services within Guadeloupe, Martinique and La Réunion from VAT. Until now,...
According to a ruling by the French Conseil d’État – 16 July 2026 – Case No. 498533, audiobook players for children are eligible for the 5.5% reduced rate of VAT. France’s Conseil d’État, the country’s highest administrative court, confirmed this in a ruling handed down on 16 July 2026. Until now, the French Tax Authorities...
Ordinance No. 2026-671 of 27 July 2026 Following its recent publication in the Official Journal on 28 July 2026, Ordinance No. 2026-671 of 27 July 2026 officially confirms the postponement of the recodification of VAT provisions into the Code of Taxation on Goods and Services (CIBS) to 1 January 2027, instead of the previously scheduled...
BOFIP, 9 July 2026 – BOI-TVA-CHAMP-10-10-40-10 In a recent update to its guidance, the French tax authorities have clarified the VAT treatment of leasing agreements and hire-purchase agreements with an option to purchase (LOA) involving tangible movable property and real estate. The BOFiP confirms that the transfer of possession of the asset to the lessee...
From 1 July 2026, France suspended its national small parcel tax (introduced in March 2026) and replaced it with a standardised European customs duty of €3 per product category. This duty applies to all parcels valued at €150 or less imported from countries outside the EU. Collected at EU level, it now harmonises the rules...
The Council of the European Union announced on 5 May 2026 an agreement to strengthen cooperation between Member States, the European Public Prosecutor’s Office and the European Anti-Fraud Office in tackling cross-border VAT fraud. The aim is to give investigation authorities better access to the data they need to detect and prosecute fraud schemes, including...
European Parliament study, 22 June 2026 The European Parliament has published a study examining the effects of the reverse charge mechanism under articles 199a and 199b of VAT Directive 2006/112/CE. These provisions allow Member States to depart from the normal rule that the supplier collects VAT. In situations presenting a particular fraud risk, they can...
Bordeaux Administrative Court of Appeal judgment, 19 May 2026, no. 25BX00295 The court confirmed that VAT reverse charge applicable to building works carried out as a subcontractor (French Tax Code article 283, 2 nonies) requires demonstrating genuine subcontractor status. A construction company had applied the reverse charge mechanism to services provided as part of building...
EU : General Court of the European Union, 3 June 2026, T-198/25, G Kft The General Court of the European Union ruled on whether a national rule is compatible with the VAT Directive when it prevents a taxable person from correcting their VAT position once a tax audit becomes final. A company discovered after a...
From 1 July 2026, Austria has introduced a reduced VAT rate of 4.9% for a selection of essential food products, replacing the previous reduced rate of 10%. The 4.9% rate applies only to products that correspond exactly to the tariff codes listed in the new Schedule 3. Processed or composite products not falling within those...
The Italian Tax Authority published a ruling on 29 May 2026 setting out how the simplified regime for intra-EU triangular transactions applies. Under this regime, an intermediary established in one Member State can buy goods from a supplier in another Member State and resell them to a customer in a third Member State. Provided the...
Bordeaux Administrative Court of Appeal Judgement, 21 May 2026, no 24BX01030 This judgment clarifies the criteria for determining whether furnished holiday lettings fall under VAT exemption or must be taxed due to their hotel-like characteristics. In this case, a French property management company was letting furnished apartments in a ski resort and had claimed VAT...
