In decision no. 2022-1009 QPC of September 22, 2022 , the Constitutional Council ruled that the 5% fine provided for in the first paragraph of 4 of article 1788 A of the general tax code for failure to reverse charge the VAT (when the taxpayer is authorized to deduct it) is constitutional.
Context
In a decision dated June 14, 2022, the Council of State considered that the 5% fine for lack of reverse charge could, due to the absence of a cap on the amount of the fine , in particular undermine the principle proportionality of sentences guaranteed by the Constitution.
This referral to the Constitutional Council followed the previous decision of unconstitutionality of the fine provided for in article 1737, I-3 of the CGI for non-invoicing (see our previous article ).
Source Deloitte
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