Decree no. 2014-44 of January 20, 2014 (Journal Officiel, January 22, 2014), changes the effective dates of the option for VAT taxation of leases of unfurnished professional premises and leases of land and farm buildings for agricultural undertaking which are, in principle, VAT exempt (Article 261 D, 1° and 2° and Article 260, 2° and 6° of the French Tax Code).
As of January 23, 2014, the option and the option waiver take effect on the first day of the month during which they are exercised, and not on the first day of the month after the month during which they were exercised (Articles 194 and 202 of Annex II to the FTC). This provision simplifies the situation of the future owners of real estates that are to be leased. Indeed, the owners were previously required to exercise this option before purchasing the real estate.
Applying the consequences of the Legal Simplification Act of March 22, 2012, the decree also removes the requirement of prior registration of fixed-term rural leases in order to benefit from the VAT option pursuant to Article 260-6° of the FTC.