VAT: Deduction Rights and Taxation Coefficient for Single Taxable Person Regime Members

• The rules for VAT deduction rights, as defined in the French tax code, apply to single taxable persons (assujettis uniques), with specific clarifications due to their organizational structure.
• Each member of a single taxable person is considered a distinct sector, and the calculation of the VAT deduction coefficient must account for how expenses are used across these sectors.
• Transactions between members of a single taxable person are not subject to VAT, and VAT deduction for internal expenses depends on their use for the taxable operations of the single taxable person.
• Taxable operations include all activities within the scope of VAT, whether taxed or exempt.

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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