The French tax authorities clarified the VAT exemption relating to donations of goods made to health establishments, social and medico-social establishments which welcome the elderly, people with disabilities or chronic pathologies, professionals health, at the services of the State and local authorities, during the period of the health emergency.
Question:
Can a company benefit from the provisions of article 273 septies D of the general tax code (CGI) when, during the period of the state of health emergency to face the epidemic of covid-19, it realizes a donation for the benefit of health establishments, social or medico-social establishments which welcome the elderly, the disabled or those suffering from chronic pathologies, health professionals, or even state or community services territorial?
Reply :
In accordance with the provisions of 3 ° of 2 of IV of article 206 of appendix II to the CGI , is not in principle deductible the tax having encumbered ceded goods without remuneration or for a remuneration much lower than their normal price, especially as gifts or donations.
It follows that if at the time of their acquisition, the goods or the elements composing it gave rise to total or partial deduction because they were intended for an operation giving right to deduction, then their free delivery makes the imposition of tax payable. ‘a delivery to oneself (LASM) of the good in application of 1 ° of II of article 257 of the CGI and the tax resulting from this taxation is not deductible.
However, under the terms of article 273 septies D of the CGI , no regularization of the tax initially deducted has to be operated for unsold unsold and non-food items that have been given to recognized public utility associations (RUP) presenting a general humanitarian, educational, social or charitable interest.
In the spirit of this provision, it is allowed, during the period of the health emergency declared by article 4 of the law n ° 2020-290 of March 23, 2020 emergency to face the epidemic of covid-19 , to extend the benefit to donations of sanitary materials (masks, hydroalcoholic gels, protective clothing and respirators) made, purchased, subject to an intra-community acquisition or an import, made by companies for the benefit of health establishments mentioned in article L. 6111-1 of the public health code (CSP) , social and medico-social establishments mentioned in 6 ° and 7 ° of I of the article L. 312-1 of the code of social action and families (CASF), health professionals mentioned in 1 ° of 4 of article 261 of the CGI , as well as state services and local authorities. This tolerance applies even when these materials are acquired with a view to a donation.
The exemption from regularization also applies exemption from taxation of the LASM.
Given the exceptional circumstances of the state of health emergency, the benefit of this tolerance is not subject to the issue by the beneficiary of the gift, of a certificate established in the manner described in § 90 of BOI-TVA- DED-60-30 . On the other hand, the donor company retains the necessary information to support its accounting, making it possible to identify the date of the donation, its beneficiary, the nature and the quantities of goods donated.
