Applying the CJEU’s interpretation of the GAP, which, as noted, is found in Article 261B of the French Tax Code, would result in an additional cost for companies in the banking and insurance sector on their intra-group transactions.
To address the inequity, France has amended its VAT. Finance Law (PLF) for 2021 provides for the establishment of a VAT Group regime within the meaning of Article 11 of the VAT Directive and the modification of the scope of the regime for independent groups of persons (Article 261 B of the CGI). Under the new provisions, the regime for independent groups (GAP) would no longer apply to operations carried out in the field of health, education, and services provided by non-profit organizations.
Source: BDO
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