- The coefficient of flat-rate taxation is determined by the ratio of annual turnover from deductible operations to total annual turnover from taxable operations.
- The Council of State confirms the use of the coefficient of flat-rate taxation for determining deductible VAT on mixed expenses.
- The CJEU assesses the deductibility of VAT based on the direct and immediate link between expenses and economic activities.
- Expenses incurred for operations not directly related to deductible operations can still be deducted if they are part of the cost of the final products.
- Overhead expenses incurred by a partial taxpayer are deductible based on their flat-rate taxation coefficient.
- Different rules apply to deducting tax on expenses incurred by a “mixed holding” for share transactions.
Source: bofip.impots.gouv.fr
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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