France: The Administrative Court of Appeal of Paris has ruled that input VAT cannot be deducted for pre-incorporation acquisitions unless the transaction is clearly linked to the future company. The decision underscores the need for consistent documentation and evidence that the purchase was made on behalf of the company before incorporation.
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Key Takeaways
The court ruled that input VAT cannot be deducted for pre-incorporation acquisitions unless the transaction is clearly linked to the future company, as of 7 July 2026.
Taxpayers must provide consistent documentation proving the transaction was carried out on behalf of the future company, including invoices that identify the future company as purchaser, as of 7 July 2026.
Primary source
Read the full article at Global VAT ComplianceThis summary was published on VATfaqs.com on 7 July 2026. It relates to VAT developments in France. The original source is Global VAT Compliance.
