Optional VAT group regime (single taxable person) introduced
Article 162 of the 2021 Finance Act creates Article 256 C of the General Tax Code, allowing businesses established in France that are closely linked financially, economically and organisationally to form a single VAT taxable person. The option, made by 31 October of the previous year, takes effect on the following 1 January for three years: the first VAT groups have operated since 1 January 2023. The 2023 Finance Act (Articles 86 and 91) adjusted the regime.
Measure originators
European origin
EUFaculté ouverte aux États membres par la directive TVA de considérer comme un seul assujetti des personnes étroitement liées
No official estimate found for this measure.
Measure impact
Transactions between members of the same VAT group fall outside the scope of VAT; the group files a single return through its representative. The financial link requires direct or indirect ownership of more than 50% of the capital or voting rights.
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
President of the Republic signature
Publication au Journal officiel