France Court Ruling: Strict Evidence Required for VAT Refunds on Real Estate Renovations

• France requires strict proof for VAT deductions on real estate intended for commercial rental.
• A case involved a EUR 950,000 VAT credit refund request for renovations on villas in Cannes.
• The Tax Authority denied the request due to insufficient evidence of the property’s economic purpose.
• The Administrative Court of Appeal of Marseille upheld the denial, emphasizing the need for adequate evidence.
• Evidence includes rental agreements, correspondence with booking platforms, and marketing efforts.
• The ruling highlights the importance of meeting evidentiary requirements for VAT deductions.
• Failure to provide necessary evidence results in denial of VAT refund claims.

Source: vatabout.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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