- The French General Directorate of Public Finance released guidance on VAT for company vehicles used for both professional and private purposes.
- Topics include stipulated consideration and VAT implications.
- Guidance covers territoriality, tax base, payment terms, and deduction rights.
- VAT declaration and payment under common law when both employee and employer are in France.
- Optional VAT collection via OSS when the employee is in France and the employer is in another EU state.
- Full VAT deduction for vehicles acquired for permanent employee use.
- Stipulated compensation includes providing a vehicle without salary deduction or credit use and offering free transport for private needs.
Source: news.bloombergtax.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.
