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France: Possible transposition of VAT group regime into French law

France: Possible transposition of VAT group regime

The value added tax (VAT) group regime—provided for under the EU VAT Directive—may be proposed for transposition into French law as part of the draft Finance Act for 2021 (although this is still uncertain relating to the parliamentary discussions that would be scheduled for after the summer).


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The VAT group regime allows different legal entities established in the same EU Member State to be considered to be a “single taxable person” as long as the entities are closely related to each other financially, economically, and in terms of organization. The VAT group regime makes it possible to ignore all supplies of goods and services between group entities and to report only transactions with “external” third parties. Therefore, the regime allows a single VAT return to be filed, consolidating all of those third-party transactions.

Implementation of the VAT group regime in France could be effective, at the earliest, beginning 1 January 2022.

Read a July 2020 report [PDF 1000 KB] prepared by the KPMG member firm in France

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