The overseas communities covered by article 73 of the Constitution of October 4, 1958 where value added tax (VAT) applies are Guadeloupe, Martinique and Reunion.

I. Rice operations in the community of La Réunion

5

In Réunion, sales and imports of rice are exempt from VAT under the provisions of 2° of 1 of Article 295 of the General Tax Code (CGI) .

To give full effect to these provisions, taxable persons may deduct, under the ordinary conditions applicable to them, the tax charged on their purchases of goods and services.

II. Transactions concerning certain products and raw materials

A. Affected Products

10

The exemption provided for by 5° of 1 of article 295 of the CGI covers:

– on the one hand, on operations relating to equipment intended for the hotel and tourism industry listed in 1 of article 50 undecies of appendix IV to the CGI ;

– on the other hand, on operations relating to products, building materials, fertilizers and industrial and agricultural tools, the list of which is given in I of article 50k of appendix IV to the CGI . This list of products is supplemented by bread and rice (CGI, ann. IV, art. 50 duodecies, II).

1. Equipment for the hotel and tourism industry

has. Use of materials

20

To benefit from the exemption, the equipment intended for the hotel and tourism industry must be used in its operation by a company belonging to the hotel and tourism industry: hotel, hotel-restaurant, boarding house, restaurant, café-restaurant, inn, café, bar, snack bar, tea room, casino, operation of swimming pools, amusement parks, golf, tennis, boating, various games. The exemption is also allowed for the same material purchased for the equipment of tourism, camping and caravanning associations, hostels, camps and holiday colonies, youth hostels, rural lodgings, urban lodgings and houses family.

b. Formalities incumbent on the importer

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When importing products of the species, importers must:

– request the benefit of the exemption on the import declaration;

– submit in support of the import declaration a certificate in duplicate indicating the surname, first names, profession or company name and address of the recipient, as well as the nature, quantity and value of the imported products. This certificate must include the commitment, in the event that the products do not receive the allocation justifying the exemption from VAT, to pay the tax service for companies the tax that has become payable, without prejudice to the penalties provided for by the article 1727 of the CGI , by article 1729 of the CGI , by article 1731 of the CGI and from article 1784 of the CGI to article 1786 of the CGI .

vs. Clarifications concerning cars intended for the transport of persons

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The exemption likely to benefit cars for the transport of persons comprising a minimum of seven seats, listed under No. 87-03 of the tariff of import customs duties, is subject to the exclusive assignment of these vehicles to the customer service and limited, moreover, to one vehicle per hotel of twenty to one hundred rooms and to two vehicles per hotel of more than one hundred rooms ( CGI, ann. IV, art. 50 undecies, 2 ).

2. Industrial and agricultural products, building materials, fertilizers and tools

50

According to the case law of the Council of State (EC, decision of July 13, 1966, No. 64531, Gothland case), the fact that a product appears on the list of building materials, fertilizers, industrial and agricultural tools alone entitles the said product to tax exemption.

The exemption of the products referred to in article 50k of appendix IV to the CGI is therefore not subject to any conditions of use.

60

It is noted that certain materials and tools appear in this article under their heading in the customs tariff accompanied by a statement such as “intended for construction” or “for industrial or agricultural use”. The exemption then applies to articles included in this heading and which, by reason of their nature, are normally used in building construction or as professional tools, regardless of the use made of them in such a case. particular.

B. Exempt Transactions

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The exemption applies:

– imports of raw materials and products referred to in article 50 undecies of annex IV to the CGI and in article 50 k of annex IV to the CGI ( CGI, art. 295, 1-5°-a ) ;

– sales and deliveries to oneself of similar locally manufactured products (CGI, art 295, 1-5°-b);

– to the delivery in the state of goods imported exempt from tax in accordance with a of 5° of 1 of article 295 (CGI, art. 295, 1-5°-c).

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To give full effect to these provisions, it is recalled that taxable persons may deduct, under the ordinary conditions applicable to them, the tax which has been charged to their purchases of goods and services.

III. Air and maritime transport of passengers and goods

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The tax system for air and sea transport of passengers and goods in Guadeloupe, Martinique and Reunion differs depending on whether these transports are carried out:

– from mainland France to these communities and vice versa, as well as from one of these communities to another of these communities, other than those between Guadeloupe and Martinique;

– from Guadeloupe to Martinique and vice versa;

– in the communities of Guadeloupe, Martinique and Reunion.

The rules of territoriality applicable to passenger transport services are set by 4° of article 259 A of the CGI . Goods transport services fall under article 259 of the CGI when the lessee is a taxable person or under 4° of article 259 A of the CGI when the lessee is a non-taxable person.

A. Transport carried out from mainland France to Guadeloupe, Martinique or La Réunion and vice versa as well as from one of these communities to another of these communities, excluding transport between Guadeloupe and Martinique

1. Passenger transport

90

Air transport is exempt pursuant to 8° of II of article 262 of the CGI .

Maritime transport is exempt pursuant to 8° of II, article 262 of the CGI and 1° of 1 of article 295 of the CGI for the part of the transport carried out in the communities of Guadeloupe, Martinique and Reunion.

2. Freight transport

has. Transport directly linked to exports

100

Air transport of goods is exempted pursuant to 1° of I of article 262 of the CGI .

Maritime transport of goods is exempt pursuant to 1° of I of article 262 of the CGI and 1° of 1 of article 295 of the CGI for the part of the transport carried out in Guadeloupe, Martinique or Reunion.

The exemption provided for by 1° of I of Article 262 of the CGI covers, in addition to direct shipments, certain approach transport carried out, whatever the mode of transport used, with a view to transporting goods from mainland France. to the communities of Guadeloupe, Martinique or Reunion or one of these communities to mainland France or one of the other communities ( BOI-TVA-CHAMP-20-60-20 ).

It also covers services, other than transport, related to the export of goods ( BOI-TVA-CHAMP-30-30-20-10 and BOI-TVA-CHAMP-30-30-20-20 ).

b. Incidental import transport

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The provision of services having the character of ancillary costs on importation (in France or in another Member State of the European Union), within the meaning of 2° and 3° of article 292 of the CGI , are exempt in under 14° of II of article 262 of the CGI ( BOI-TVA-CHAMP-30-30-20-40 ) when their value is included in the import tax base:

– in mainland France, goods originating in or coming from the communities of Guadeloupe, Martinique, Reunion, Guyana and Mayotte;

– in the communities of Guadeloupe or Martinique of a good originating in or coming from metropolitan France, another Member State of the European Union, or another overseas community;

– in the community of La Réunion of a good originating in or coming from metropolitan France, another Member State of the European Union, the communities of Guadeloupe or Martinique.

Note: It is recalled that goods originating from third countries or overseas communities not covered by Article 73 of the Constitution of October 4, 1958 also benefit from these provisions.

B. Transport from Guadeloupe to Martinique and vice versa

120

Guadeloupe and Martinique form a single territory for the application of the rules relating to VAT.

1. Passenger transport

130

Air transport is exempt pursuant to 8° of II of article 262 CGI .

Note: Air passenger transport carried out between Martinique and Guadeloupe and vice versa is taken into account for the determination of the 80% threshold mentioned in 4° of II of article 262 of the CGI.

Maritime transport is exempt pursuant to 8° of II of article 262 of the CGI and 1° of 1 of article 295 of the CGI for the part of the transport carried out in the communities of Guadeloupe and Martinique.

2. Freight transport

140

Air transport of goods is taxable for the part of the transport carried out in the communities of Guadeloupe and Martinique.

Maritime transport of goods remains exempt pursuant to 1° of 1 of article 295 of the CGI .

C. Inland transport in the communities of Guadeloupe, Martinique and La Réunion

1. Passenger transport

150

Air transport is exempt, pursuant to a ministerial decision of 11 May 1971, which extended the exemption provided for in 1° of 1 of article 295 of the CGI in favor of maritime transport of persons and goods carried out in the boundaries of each of the overseas collectivities of Guadeloupe, Martinique and Reunion. These provisions apply in particular to transport between the island of Guadeloupe and the islands of La Désirade, Marie-Galante and Les Saintes.

Maritime transport is exempt pursuant to 1° of 1 of article 295 of the CGI.

2. Freight transport

160

Air and sea freight transport follow the same regime as passenger transport.

D. Summary

170

The VAT regime applicable to transport carried out in the overseas communities referred to in § 1 is shown in the table below:

	Passenger transport:	Freight transport:
Transport between overseas communities (with the exception of transport between Martinique and Guadeloupe and vice versa)	Air transport: Exempt ( CGI, art. 262, II-8° ) Maritime transport: Exempt (CGI, art. 262, II-8°; CGI, art. 295, 1-1° )	Air transport  : exempt (CGI, art. 262, I, 1°) Maritime transport: Exempt (CGI, art. 262, I, 1°; CGI, art. 295, 1-1°)
Transport between Martinique and Guadeloupe (island of Guadeloupe and nearby French islands) and vice versa	Air transport: Exempt (CGI, art. 262, II-8°) Maritime transport: Exempt (CGI, art. 262-II-8°; CGI, art. 295-1-1°)	Air transport: Taxable ( CGI, art. 259 ; CGI, art. 259 A, 4° ) Maritime transport: Exempt (CGI, art. 295, 1-1°)
Internal transport of Guadeloupe (transport between the islands of Guadeloupe, La Désirade, Marie Galante and Les Saintes)	Air transport: Exempt (ministerial decision of May 11, 1971) Maritime transport: Exempt (CGI, art. 295, 1-1°)	Air transport: Exempt (ministerial decision of May 11, 1971) Maritime transport: Exempt (CGI, art. 295, 1-1°)

IV. Hotel companies

180

The total or partial exemption provided for in favor of hotel companies established in Guadeloupe, Martinique or Reunion, subject to the approval provided for by 3 of article 295 of the CGI in its wording prior to law n ° 70 -1199 of December 21, 1970 relating to the finance law for 1971 , remains applicable to companies which benefited, before 1971, from said approval (law no. 70-1199 of December 21, 1970 relating to the finance law for 1971, art. 66, I- 3).

V. Petroleum products

190

6° of 1 of article 295 of the CGI exempts from VAT deliveries, imports, intermediation services and contract work relating to energy and similar products, other than coal and natural gas, carried out in Guadeloupe, Martinique or Reunion.

VI. Real estate transactions

(200 to 230)

235

12° of III of article 29 of the law n° 2019-1479 of December 28, 2019 of finances for 2020 has repealed the exemption from VAT applicable to the sales of uncultivated or manifestly under-exploited land ( CGI, art. 295 , 1-3° ) whose owner has been given formal notice pursuant to Article L. 181-17 of the Rural and Maritime Fishing Code from 1 ^January 2020.

13° of III of article 29 of law n° 2019-1479 of December 28, 2019 of finance for 2020 has repealed the VAT exemption applicable to real estate transactions carried out with a view to accessing rural land ownership (CGI, art. 295, 1-4°) for which the commitment to proceed with the fragmentation was made as of January 1 ^, 2020.

The comments contained in this VI § 200 to 230 are withdrawn as of the date of publication mentioned above. To read previous comments, it is advisable to consult the various previous versions of this document in the “Published versions of the document” tab.

VII. Short-term rentals and charters of pleasure boats in Guadeloupe and Martinique

240

Article 20 of Law No. 2018-1317 of December 28, 2018 on finance for 2019 introduced , in I of Article 295 of the CGI relating to specific exemptions applicable overseas, a 7° relating to short-term rental duration of pleasure craft.

This exemption applies to short-term rentals and charters of pleasure craft with a hull length greater than twenty-four meters and whose gross tonnage is less than 3,000, within the meaning of the maritime regulations published by the Ministry of ecological and solidarity transition . The vessels concerned are those which meet the specifications of division 242 of the regulations for professional pleasure craft at sea.

In accordance with the provisions of a of 1° of article 259 A of the CGI , with regard to means of maritime transport, short-term rental means the possession or continuous use of these goods for a period which does not exceed ninety days.

The exemption applies to vessels made available from the territory of Martinique or Guadeloupe, when the purpose of the rental or charter is to carry out pleasure trips outside territorial waters.

Source: gouv.fr