Current Tax Developments - Value Added Tax

In a decision dated April 9, 1996, the Commercial Supreme Court reasserted the principle under which, in the absence of a proven agreement between parties to a contract as to the final VAT charge, it must be borne by the party that is liable to VAT under tax law - i.e., the service supplier or the seller in the case of sale of goods.

Consequently, where a price is mentioned in a contract without indication of VAT, the price is presumed to include VAT.

The content of this article is intended to provide a French guide to the subject matter. Specialist advice should be sought for your specific circumstances.

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