French Court Clarifies VAT Deductibility and Audit Rules for Subcontractor Invoices

• The Paris Administrative Court of Appeal (Decision No. 25PA00482, May 29, 2026) clarified rules on input VAT deductibility for subcontractor invoices.
• In a tax audit of a private security services company, the court upheld additional corporate income tax, VAT, and CVAE assessments.
• The court found the audit procedure valid because the relevant period was corrected before substantive audit work began.
• It also ruled that the taxpayer did not adequately prove entitlement to the CICE tax credit.
• The decision addressed VAT deducted in advance on unpaid or potentially fictitious invoices, supporting denial of the deduction.

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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