French General Tax Code
In forceI. - At the request of the company, the added value of establishments exempt from business property tax pursuant to the decision of a municipality or a public establishment for inter-municipal cooperation is exempt from business value added tax for the portion taxed for the benefit of the municipality or the public establishment for inter-municipal cooperation. Where the exemption from business property tax is partial, the exemption from business value added tax applies in the same proportion for the fraction of the value added taxed for the benefit of the local authorities concerned by the exemption from business property tax.
II. - Where establishments may be exempted from business property tax by a decision of a commune or a public establishment for inter-communal cooperation, the départements may, by a decision taken under the conditions provided for in I of article 1639 A bis or article 1464 C exempt their added value from business value added tax for the portion taxed in their favour. The exemption applies at the company's request. For establishments eligible for exemption from business property tax pursuant to articles 1464 A, 1464 F, 1464 G and 1465 and of I of l'article 1466 A, the deliberation determines the exempted proportion of the value added taxed for the benefit of the deliberating community.
III. - Establishments that may be exempt from business property tax in the absence of a decision to the contrary by a local authority or a public inter-municipal cooperation body with its own tax system are, at the request of the business and unless a decision to the contrary is taken under the conditions provided for in I of Article 1639 A bis, by the local authority or the public inter-municipal cooperation body with its own tax system applicable to the fraction of value added taxed in its favour, exempt from business value added tax.
IV. - For the purposes of determining the business value added levy, the value added of establishments benefiting from a reduction in their net business property tax base pursuant to article 1466 F is subject, at the company's request, to an abatement at the same rate, for the fraction of value added taxed for the benefit of the local authorities concerned by the abatement of business property tax, up to a limit of €2 million of value added.
V. - For the determination of the business value added tax, the added value of establishments benefiting from an exemption or a reduction in the net tax base for the business property tax pursuant to I, I sexies or I septies of article 1466 A is subject to, at the company's request, of an exemption or a reduction at the same rate, up to a limit for 2022 of €154,732 and €420,505 respectively of added value per establishment and updated each year according to the change in the price index.
VI. - The benefit of the exemptions from cotisation sur la valeur ajoutée des entreprises provided for in I to III and the allowance provided for in IV is lost when the conditions for the corresponding exemption or allowance from cotisation foncière des entreprises are no longer met.
The benefit of the business value added tax exemption or allowance is, where applicable, subject to compliance with the same Community regulation as that applied for the business value added tax exemption or allowance from which the establishment benefits.
VII. - Where a business has several establishments in the same municipality, its value added taxed in the municipality is, for the application of this article, divided between these establishments according to the procedures set out in III of Article 1586 octies.
