France Clarifies VAT Refund Rules for EU Nonresident Businesses Without Taxable Activities in France

• The French Administrative Court of Appeal clarified VAT refund rules for EU nonresident businesses.
• A German company could not use the standard French VAT deduction as it had no taxable transactions in France.
• Refunds for such companies are limited to the EU VAT refund procedure for nonresidents.
• Deficiencies in the tax authority’s reasoning do not entitle businesses to a VAT refund.
• EU businesses without taxable supplies in France must use the nonresident VAT refund process, regardless of expense type.

Source: globalvatcompliance.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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