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Public France Author: Kristina Dosen
The finance law for 2021 transposed into French law the VAT directive allowing the creation of a VAT Group. Under this regime, a single taxable person is created within a group of companies. The entry into force of this new system has been postponed to January 1, 2022, with regular application from January 1, 2023.
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Content accuracy validation date: 14.03.2022
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The utility of the system is to guarantee greater neutrality of VAT on the organizational choices of companies. For the purpose of the VAT collection, a single taxable person is created between a parent company and its subsidiaries. Consequently, transactions carried out between members of the group remain outside the scope of VAT.

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