- Associations that are closely linked on financial, economic, and organizational levels can form a VAT group in France.
- To create a VAT group from January 1, 2024, the option must be notified to the tax authorities by October 31, 2023.
- The option covers a mandatory minimum period of 3 years, until December 31, 2026.
- Financial links are determined by control, either directly or indirectly, by the same person, with control being satisfied by owning more than 50% of the capital or voting rights.
- The administration has provided clarification for associations, stating that financial links are characterized by controlling a majority of votes in the general assembly.
- An example is given where a company A owns a certain percentage of the capital in companies B, C, and D, and these companies each hold a voice in the general assembly of association E.
- As a result, B, C, D, and E are considered closely linked on a financial level.
Source: pkf-arsilon.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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