Article 260 B of the French tax code allows taxable persons who usually carry out VAT exempt banking and financial transactions as described in article 261 C, 1° of the CGI to opt for the application VAT. The OTT allows the person exercising it to benefit from a right to deduct input VAT and has a favorable impact on the salaries tax liability ratio. However, it generates the charging of VAT on the concerned services located in France, which may be economically disadvantageous compared to the exemption, depending on whether the customers are able to recover input VAT.
Source en-taj
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