The 2021 Finance Act has transposed into French law the VAT Directive which allows the formation of a VAT group. Following the example of what already exists for tax consolidation, the members of a VAT group constitute a single taxable person. For the determination of the right to deduct of the single taxable person, each member is considered as a sector of activity of the group. It is therefore necessary to draw the consequences for the right to deduct and for payroll tax.
The formation of a VAT group is available to all sectors of economic activity. The exercise of this option, for a period of 3 years, must be formalised before 31 October
2022 for implementation from 1er January 2023.
Source Crowe
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