In its guidelines published in the BOFIP on February 4, 2014 (BOI-TVA-LIQ-50-20140204), regarding the conditions under which the VAT rates of 5.5%, 10% (formerly 7%) and 20% (formerly 19.6%) should be implemented as of January 1, 2014, the French tax authorities provide new details on supplies of goods and services giving rise to successive statement of accounts or successive payments.
Indeed, regarding these transactions the chargeable event and the chargeability of VAT occur as a general principle upon the expiry of the periods to which the statement of accounts and payments relate. However, due to the modification of VAT rates as of January 1, 2014, the tax authorities have stated that persons liable for payment of VAT who perform an accurate breakdown of the transaction can continue to submit the portion of the transaction carried out before January 1, 2014, to the rate in effect before January 1, 2014, provided that the invoice mentions this breakdown. Henceforth the tax authorities point out that, regarding construction works giving rise to successive statement of accounts (“works progress report”), it should be applied the rate in effect upon expiration of the periods to which the works progress reports are related.
Act no. 2014-237 of February 27, 2014 brings the VAT rate applicable for online media services in line with the VAT rate applied for the printed press (Article 298 septies of the FTC, as amended). The online press services that were subject to the normal VAT rate now benefit from the reduced VAT rate of 2.1% for transactions for which VAT is due as of February 1, 2014, provided that such press services are recognized as such by the Joint Committee on Publications and Press Agencies (CPPAP).
In addition, the tax authorities recently provided updated guidelines related notably to equestrian activities (BOI-TVA-LIQ-20-20, BOI-TVA-LIQ-30-20-100, BOI-TVA-SECT-80-10-30 et seq.), energy quality improvement works (BOI-TVA-LIQ-30-20-95-20140225) and home-care services (BOI-TVA-LIQ-30-20-80-20140219 no. 170).