French Court Rules Against VAT Exemption for Micro-Enterprise Due to Exceeded Turnover Limits

• The French Court of Appeal of Douai issued a decision on income tax and VAT liability for a micro-enterprise business introducer.
• The taxpayer operated under the French micro-enterprise regime due to turnover being below specified thresholds.
• The tax administration challenged the VAT exemption benefit for 2018-2020 and increased income tax bases for 2019 and 2020 with 10 percent increases.
• The Court found the taxpayer was not entitled to the VAT exemption for 2018-2020 as turnover exceeded legal thresholds in prior years.
• The taxpayer failed to provide sufficient documentation for VAT deductions and did not declare all non-commercial profits for 2019 and 2020.

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.

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