INTERNATIONAL TAX PLAZA - The European Commission asks France to apply the normal VAT rate to products of agricultural origin which are not intended for use in food products or in agricultural production

(March 26, 2015)

On March 26, 2015 the European Commission announced that by way of a reasoned opinion it has asked France to apply the normal VAT rate to products of agricultural origin which are not intended for use in food products or in agricultural production.

According to the European Commission France authorizes the application of a reduced VAT rate for certain products used in the production of non-food industrial products.

The request has been made in the form of a reasoned opinion. If the Commission does not receive a satisfactory reply within two months it could decide to take the case to the Court of Justice of the European Union.

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