France Court of Appeal of Douai Clarifies Income Tax, VAT Liability for Micro-Enterprise Business Introducer

The French Court of Appeal of Douai Aug. 28 issued Decision No. 24DA01460, clarifying the income tax and VAT liability for a micro-enterprise business introducer. The taxpayer, an individual, operated as a business introducer and placed himself under the French micro-enterprise regime, which is provided for when turnover is lower than the specified thresholds. The tax administration challenged the benefit of the regime’s VAT exemption, which exempted the taxpayer from paying VAT for 2018-2020, and increased the taxpayer’s income tax bases for 2019 and 2020, with the taxes being accompanied by 10 percent increases. On appeal, the Court of Appeal ...