VAT concordance table: from the CGI to the CIBS

Accommodation service

The accommodation service means the service characterised by the combination of the making available of a dwelling and the existence of a certain number of so-called “para-hotel” services (breakfast, cleaning, household linen, reception).

That accommodation service may be for tourist or business use, where it falls within the hotel sector or similar sectors and does not exceed thirty nights (CIBS, art. L. 231-23), or for residential use, where it does not fall within those sectors and the dwelling is intended for the residence of the occupant (CIBS, art. L. 231-24).

Activity of livestock dealers

The activity of livestock dealers means the activity of a taxable person, other than an agricultural activity, in the course of which live butchery or charcuterie animals are sold. This article makes it possible to define the concept of activity of livestock dealers within the meaning of the provisions of 3° and 4° of II of article 298 bis of the CGI.

Additional right of deduction

The additional right of deduction designates one of the two types of adjustment of the deductible tax, arising from events subsequent to the chargeable event of the right of deduction, mentioned in article L. 224-7 of the CIBS, article L. 224-8 of the CIBS and article L. 224-9 of the CIBS.

This type of adjustment generates a claim of the taxable person against the Treasury. It leads the taxable person to make the additional deduction of all or part of the tax charged on the goods or the service concerned, the amount of the additional deduction being recorded on the turnover return (on line 21 of return n° 3310-CA3-SD [CERFA n° 10963] available on impots.gouv.fr).

Additional tax

The additional tax designates one of the two types of adjustment of the tax due, arising from events subsequent to the chargeability of the tax, mentioned in article L. 214-11 et seq. of the CIBS. It also arises where certain conditions for the application of the derogating rates in the social housing sector cease to be complied with (CIBS, art. L. 231-100).

This type of adjustment generates a debt of the taxable person to the Treasury. The taxable person is liable for payment of a greater amount of tax due than the amount established at the time of the primary chargeability of that tax. The amount of the additional tax is recorded on the turnover return on line B5 of return n° 3310-CA3-SD (CERFA n° 10963) available on impots.gouv.fr.

Age of a building

The age of a building designates the time elapsed since its completion. Depending on whether or not that age exceeds five years, the building is regarded as old or new immovable property (CIBS, art. L. 231-8), that classification having an effect on several arrangements applicable in matters of value added tax (VAT), in particular on the regime of the transfer, or again on certain derogating rate arrangements.

Agricultural activity

Agricultural activity means the activity of a taxable person by which a product is obtained or processed during or at the end of a plant or animal production cycle. It includes crop farming, animal husbandry connected with the working of the land, forestry and fishing.

Alcoholic beverages

Alcoholic beverages means beverages of an actual alcoholic strength by volume exceeding 1,2 % vol or, for beers made from malt and mixtures of beers made from malt and non-alcoholic beverages, 0,5 % vol.

Ancillary element

An ancillary element within a transaction is an element, that is to say a good or a service, which, within that transaction, has no independent purpose. It is established where its value, both quantitative and qualitative, is minimal or negligible.

For the analysis of the derogations that may apply to a transaction (CIBS, art. L. 213-8), no account is taken of any derogations that would apply to an ancillary element if it were taken individually.

Ancillary transaction of a non-profit organisation

An ancillary transaction of an organisation is taken to mean a transaction which does not benefit from an exemption, by reason of the nature of the goods or services supplied, carried out by the organisation for one of its members, which is not the subject of any advertising targeting persons who are not members of the organisation and which does not include the provision of accommodation, of a catering service or of foodstuffs for immediate consumption. Transactions meeting the conditions laid down in 1° to 4° are not ancillary where their cumulative considerations exceed 10 % of the organisation's receipts. This concept takes over and clarifies the elements of definition that appeared in paragraphs 2 to 4 of a of 1° of 7 of article 261 of the CGI.

Authorised tax arrangement

An authorised tax arrangement means the body of rules relating to goods situated within the territory of taxation and placed in a particular situation covered by a dedicated administrative authorisation, granted where the transactions liable to be carried out on the goods subject to the arrangement give rise to a right of deduction of the input tax, where the removal of the goods from the arrangement does not have as its object a supply of those goods to a non-taxable legal person or to a private individual, where the application of the arrangement makes it possible to limit cash-flow burdens and administrative obligations in a manner liable to promote international trade significantly and where the application of the arrangement entails no risk of loss of tax revenue. This concept takes over the elements of definition that appeared in a to e of 2° of I of article 277 A of the CGI.

Autonomous sector

An autonomous sector refers to the distinct sector of activity that must be constituted by a taxable person who meets the conditions laid down in sub-section 4 of section 2 of chapter III of title II of book II of the legislative part of the code des impositions sur les biens et services. It is based either on the type of activities concerned or on the location of those activities.

Autonomous sub-sector of a single taxable person

Where a single taxable person is constituted within the meaning of chapter IV of title III of book II of the legislative part of the code des impositions sur les biens et services, each member constitutes a sector of that single taxable person (CIBS, art. L. 234-19).

Where that member, in respect of its activity, meets the conditions laid down by sub-section 4 of section 2 of chapter III of title II of book II of the legislative part of the code des impositions sur les biens et services for constituting an autonomous sector, that sector is regarded as a sub-sector of the single taxable person.

Body managed on a disinterested basis

A body managed on a disinterested basis means a body managed and administered on a voluntary basis by persons who have, either themselves or through an intermediary, no direct or indirect interest in the results of the operation. For associations governed by the Law of 1 July 1901 on the contract of association and associations governed by the local law in force in the departments of Moselle, Bas-Rhin and Haut-Rhin, as well as for foundations recognised as being of public utility and corporate foundations governed by Law No 87-571 of 23 July 1987 on the development of patronage, remuneration for management functions which fulfils the conditions and does not exceed the limits determined by decree adopted after consultation of the Conseil d'État is deemed not to constitute a direct or indirect interest. This concept takes over the elements of definition that appeared in paragraphs 1 to 11 of 1° of 7 of article 261 of the CGI.

Building

A building designates a category of immovable property: it means constructions fixed to or in the ground, other than mere developments of the ground or immovable property unfit for any use. These characteristics are defined by transposition of article 12 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, as amended.

Building land

Building land means land, other than built-on land, on which or in which the construction of buildings may be authorised pursuant to a local town planning plan, to another town planning document serving in its stead, to a communal map or to article L. 111-3 of the code de l'urbanisme (C. urb.), or is authorised pursuant to article L. 111-4 of the C. urb. This concept takes over the elements of definition that appeared in 1° of 2 of I of article 257 of the CGI.

Built-on land

Built-on land means land to which or in which a building is affixed.

Butchery or charcuterie animal

The butchery or charcuterie animal means the animal falling within one of the categories determined by order of the minister responsible for the budget.

Call-off stock arrangements

Call-off stock arrangements mean the situation involving a taxable person, as potential supplier of goods, and another taxable person, as eligible recipient of those goods, in which the following conditions are met. The potential supplier arranges the intra-Community transport of goods of which he disposes as owner and the potential supplier and the eligible recipient agree that the goods are liable to be the subject of a supply made for consideration at the end of their intra-Community transport. The supplier and the eligible recipient must also meet the conditions and formal obligations laid down in article L. 211-120 of the CIBS. These arrangements cover those that appeared in 1° of 1 of III bis of article 256 of the CGI.

Capital goods

Capital goods are tangible or intangible goods having a positive economic value for the taxable person, which serve his activity on a lasting basis and are not consumed by first use. The classification as capital goods covers that of fixed asset within the meaning of the accounting rules.

This concept is used in matters of the right of deduction of the tax. In particular, the adjustments of the deductible tax charged on capital goods follow specific rules based on the existence of a deduction period.

Care having a therapeutic purpose

Care having a therapeutic purpose means services whose principal purpose is, in respect of a specific natural person, to diagnose, treat and, in so far as possible, cure that person's diseases or health disorders, or to protect, maintain or restore that person's health.

Carrying out of an economic activity

The carrying out of an economic activity means all acts, whatever their place, purpose or results, performed by a given entity and intended, by means of the consideration for transactions carried out for consideration, to obtain income on a continuing basis having overall a direct link with those acts. This concept takes over the elements of definition that appeared in the fifth paragraph of article 256 A of the CGI.

Change in the use of capital goods

The change in the use of capital goods refers to a set of events reflecting a significant change in the application of those goods during their deduction period, thus entailing an overall adjustment of the deductible tax.

The change in use does not alter the deduction period of those goods; it entails a change in the amount of tax which the taxable person is actually entitled to deduct for the remaining years of the deduction period, and therefore an adjustment of the tax initially deducted, taking the form either of an increase of the right of deduction or of a reduction of the right of deduction.

Chargeability of the right of deduction

The chargeability of the right of deduction refers to the point in time at which the taxpayer may lawfully deduct the tax charged on the inputs of his output transactions. It presupposes that a substantive condition (the occurrence of the chargeable event for the right of deduction) and a formal condition (holding an invoice or an equivalent document, in most cases) are met together.

Chargeable event

The chargeable event means the event in respect of which a tax is assessed (CIBS, art. L. 120-1). Where the chargeable event is determined by law, the elements necessary for the assessment of the tax are determined at the date on which that chargeable event occurs (CIBS, art. L. 120-2). Where the chargeable event is not determined by law, it occurs at the date on which the elements necessary for the assessment of the tax are determined (CIBS, art. L. 120-3).

Chargeable event of the right of deduction

The chargeable event of the right of deduction means the moment when the right of deduction arises, that is to say the moment or moments when the VAT becomes chargeable for the supplier of the transaction. It is distinct from the chargeability of that right of deduction, which requires both the chargeable event and a formal condition consisting, in most situations, in holding an invoice or another document (CIBS, art. L. 224-2).

Collective management organisation

The collective management organisation means the legal person mentioned in article L. 321-1 of the CPI.

Consideration

The consideration means any element making up the consideration, whatever its form, in money or in kind, its method of payment or the date on which it is collected.

Contract work

Contract work designates a supply of services by which the supplier (the contractor) transforms one or more items of movable property belonging to the customer into one or more new goods.

It normally follows the rules applicable to supplies of services, subject to certain special cases. In particular, in the food and agriculture sector, where contract work generates goods benefiting from a derogating rate, it falls under that rate.

Corrective invoice

A corrective invoice means any document or message which replaces or deletes incorrect items or adds omitted items on a previously issued invoice.

Cost-sharing group

The cost-sharing group means the entity which is independently a taxable person, whose main purpose is to enable its members to incur expenditure in common, and whose members carry on non-economic activities or carry out transactions falling within economic activities in the public interest which are exempt pursuant to the provisions of subsection 2 of section 3 of chapter III of title Ier of book II of the legislative part of the code des impositions sur les biens et services. This concept takes over and clarifies the elements of definition that were mentioned in the first paragraph of article 261 B of the CGI.

Cross-cutting special schemes

Cross-cutting special schemes refer to VAT schemes which have both the particular feature of derogating from the rules of the general scheme or of the right of deduction in respect of several of the constituent elements of the tax, and that of being capable of concerning taxable persons whatever their sector of activity.

Customer establishment

A customer establishment means, for a given transaction carried out for consideration, the place of establishment of the business of the customer of that transaction. By way of derogation, where the benefit provided by the transaction is received and used independently using the resources of a fixed establishment, the customer establishment means that other fixed establishment. In the absence of a fixed establishment, the place of residence is treated as a customer establishment. This article provides elements of definition for a concept previously referred to in article 259 of the CGI and corresponding to the concept of the fixed establishment of the customer within the meaning of article 44 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, as amended and of the provisions of paragraph 1 of article 11 of Council Implementing Regulation (EU) No 282/2011 of 15 March 2011, as amended.

Customs value

The customs value, the transaction value and the debtor of the customs debt are taken to mean those within the meaning of article L. 215-16 of the CIBS. This concept appeared in 3° of 2 of article 293 A of the CGI.

Deduction period of capital goods

The deduction period of capital goods means the period during which adjustments of the tax initially deducted are liable to take place.

It is set at five years for movable property (CIBS, art. L. 223-24) and at twenty years for immovable property (CIBS, art. L. 231-31).

Derogating exemption

Derogating exemptions means the exemptions, generally sectoral in nature, granted to certain supplies of goods and certain supplies of services by way of derogation from the general rules of taxation. They result from a specific provision of the law. These exemptions do not give rise to a right of deduction of input tax.

Derogating exemptions include, in particular, those from which economic activities in the public interest benefit (previously covered by the provisions of article 261 of the CGI), and those from which financial activities benefit (previously covered by article 261 C of the CGI).

Derogating rate

A derogating rate refers to a VAT rate which differs from the standard rate, applied to certain goods or services by virtue of a specific legislative or regulatory provision. Thus derogating from the standard rate are the intermediate rate of 10 %, the reduced rate of 5,5 %, the super-reduced rate of 2,10 % and the zero rate of 0 %, as well as the particular rate of 13 % applicable in Corsica. Likewise, in Guadeloupe, Martinique and La Réunion, derogating from the standard rate of 8,5 % applicable there are the super-reduced rate of 2,10 %, the particular rates of 1,75 %, 1,05 % and 0,9 %, and the zero rate of 0 %.

Digital facilitator

A digital facilitator means the taxable person, other than an undisclosed intermediary within the meaning of article L. 211-124 of the CIBS, who brings into contact, by means of an interface accessible by way of electronic communications within the meaning of 1° of article L. 32 of the code des postes et des communications électroniques (CPCE), a taxable supplier and a customer with a view to carrying out, by means of that interface, a supply of goods or a supply of services for consideration, and who intervenes, directly or indirectly, in the general terms and conditions of sale, the authorisation of the invoicing to the customer of all or part of the consideration and/or the terms of the transport or of the supply of the goods.

Digital services

Digital services mean electronic communications services within the meaning of 6° of article L. 32 of the CPCE, television and radio services within the meaning respectively of the fourth and fifth paragraphs of article 2 of Law No 86-1067 of 30 September 1986 on freedom of communication, as amended (Loi Léotard), services having as their object cultural, artistic, sporting, scientific, educational or entertainment activities or activities similar thereto where they are broadcast virtually, and services supplied electronically within the meaning of article L. 211-170 of the CIBS. This concept takes over the elements of definition that appeared in III of article 259 D of the CGI, in 12° of article 259 B of the CGI and in article 98 C of annex III to the CGI.

Distance sale of goods

The distance sale of goods means the supply of goods whose customer is a private individual and whose supplier intervenes in the arrangement of a transport of the goods to the private individual under the conditions determined by decree. In addition, the transaction does not fall within one of the following situations:

Lastly, for the particular situations in which the supply of goods is classified as a distance sale although the customer of the transaction is a taxable person or a non-taxable legal person, reference should be made to the rules laid down in article L. 232-7 of the CIBS, article L. 243-6 of the CIBS, article L. 244-4 of the CIBS and article L. 245-20 of the CIBS.

Distance sale of imported goods

The distance sale of imported goods means the distance sale of goods for which the place of departure of the transport of the goods is situated in a third territory and the place of destination of the transport of the goods is situated within the territory of a Member State of the EU. This concept takes over the elements of definition that appeared in 2° of II bis of article 256 of the CGI.

Dwelling

A dwelling means residential premises, their usual appurtenances for the use of the occupant as well as any common parts mainly allocated to the use of the occupants and attached to those premises. Premises allocated to residential use for at least half of their floor area are treated in their entirety as residential premises. A building in which the floor area of the residential premises represents at least half of the floor area of the premises, excluding appurtenances and common parts, is treated, as regards all of its common parts, as a dwelling.

Economic distortion

The actual or potential carrying out, within the territory of taxation, of a similar economic activity by a private body or by a public body constitutes an economic distortion. This concept was referred to in article 256 B of the CGI.

Electronically supplied service

An electronically supplied service means a service of which the recipient receives the service by way of electronic communications within the meaning of 1° of article L. 32 of the CPCE, whose material delivery is, by nature, largely automated, requires no human intervention or only minimal intervention and requires the use of information technology, and which does not fall within 1° or 2° of article L. 211-144. For the purposes of clarification, that article codifies the provisions of article 7 of Council Implementing Regulation (EU) No 282/2011 of 15 March 2011, as amended.

Eligible goods in the framework of the European response to the Covid-19 pandemic

Eligible goods in the framework of the European response to the Covid-19 pandemic mean those which an eligible entity has at its disposal or benefits from, intended to be used in the framework of the tasks conferred by EU law in order to respond to the Covid-19 pandemic and which are not used for the purposes of the carrying out by the eligible entity of supplies of goods or supplies of services made for consideration. This concept takes over the elements that were codified in 6° of article 262-00 bis of the CGI.

Equity security

Equity securities designate shares and interests in companies within the meaning of point (f) of Article 135(1) of Council Directive 2006/112/EC of 28 November 2006, as amended.

This covers equity securities issued by joint-stock companies and interests in associations.

European one-stop shop

The European one-stop shop means the procedure by which the person liable for payment of the tax simultaneously fulfils, for a given category of transactions, all of the following return obligations:

Extent of a transaction

The purpose of analysing the extent of a transaction is to determine the framework within which the VAT regime corresponding to that transaction applies. The Court of Justice of the European Union has developed a method for examining “single complex transactions”, which requires a distinction to be drawn between, on the one hand, “elements” (goods or services) and, on the other hand, “transactions” (supplies of goods, supplies of services, intra-Community acquisitions of goods and importations) made up of one or more elements (II § 60 and 70 of BOI-TVA-CHAMP-60-10).

The analysis, which must be carried out from the point of view of the average consumer, leads to grouping within a single transaction those elements which are so closely linked that splitting them into several transactions would be artificial, and the elements ancillary to them.

Final consumption of goods that have given rise to a right of deduction

The final consumption of goods that have given rise to a right of deduction designates a transaction treated as a supply of goods. It relates to the goods acquired by taxable persons (natural or legal persons, resident or non-resident) which they intend for a final consumption or for a making available free of charge, without their being incorporated into a process of production, of processing or of formation of capital goods. It also relates to the goods held by the taxable person at the time of the cessation of their economic activities.

Fixed establishment

Any establishment other than the place of establishment of the business which has a degree of permanence and a suitable structure, in terms of human and technical resources, enabling it to carry out all or part of the activities independently constitutes a fixed establishment. This article provides elements of definition as to the fixed character of the establishment, in accordance with the provisions of article 11 of Council Implementing Regulation (EU) No 282/2011 of 15 March 2011, as amended and of article 13 bis of Council Implementing Regulation (EU) No 282/2011 of 15 March 2011, as amended.

Functional exemption

Functional exemptions means the exemptions from VAT that apply to foreign trade transactions, for the purposes of the proper general functioning of the VAT system. These exemptions give rise to a right of deduction of input tax, and thus have the same effect as the application of a zero rate.

Functional exemptions include, in particular, intra-Community supplies of goods (formerly intra-Community supplies of goods).

Gift

The gift means goods whose nature, unit value and other characteristics make it possible to exclude a commercial intention, which constitute neither an alcoholic beverage, nor alcohol, nor a tobacco product, and which do not form part of a habitual activity of supplying such goods free of charge.

Goods and services necessary for the armed forces

Goods and services necessary for the armed forces means the goods and services intended for the use of those armed forces, or for the use of the civilian element accompanying those armed forces, or else for supplying the messes or canteens of those armed forces. This concept covers the scope of application of the previously applicable provisions of 4° of I of article 262-00 bis of the CGI.

Goods for the use of disabled persons

Goods for the use of disabled persons mean those specially designed for the education, the employment or the social advancement of disabled persons. They may also be a spare part, a component or an accessory relating specifically to such goods. Lastly, the concept designates a tool to be used specifically for the maintenance, the checking, the calibration or the repair of those goods.

Goods intended to be used for the benefit of persons in need

Goods intended to be used for the benefit of persons in need mean those which contribute to the charitable action of an entity eligible for the zero rate of the tax and which are neither an alcoholic product, nor a tobacco product, nor coffee or tea, nor a motor vehicle other than an ambulance. This concept takes over the elements of definition that were codified in b of 15° of article 50 octies of Annex IV to the CGI.

Goods necessary for the operation of an international trade ship or aircraft

Goods necessary for the operation of an international trade ship or aircraft means goods intended to be incorporated into the ship or the aircraft, or to supply provisions to the ship or the aircraft, or else used for the needs of the operation of the ship or the aircraft, with the exception of the stores of a ship intended for fishing in the national territorial waters of an EU Member State.

Goods or services charged with tax

Goods or services charged with tax borne by a taxable person means any goods or services which the taxable person has at their disposal or from which the taxable person benefits as a result of an input transaction charged with tax.

Goods or services relating to diplomatic or similar relations

Goods or services relating to diplomatic or similar relations means those for which the scope of the privileges and immunities includes, for the purchases of those goods or services, a zero rate of tax or any equivalent mechanism.

Goods or services that have given rise to a right of deduction

Goods or services that have given rise to a right of deduction of the tax means an input charged with tax, where that tax is wholly or partly deductible.

Goods to be carried in the traveller's luggage

Goods to be carried in the traveller's luggage mean personal goods transported from or to the territory of taxation in the luggage which the traveller is able to present to the customs service upon his arrival or his departure, or subsequently where he shows that it has been registered as accompanied luggage with the carrier. This concept was defined by the provisions of 3 of 10° of article 50 octies of Annex IV to the CGI.

Hiring of goods

The hiring of goods means the supply of services relating to those goods under which the customer acquires, for an agreed period, the right to use the goods and to exclude any other person from that right, including where that right results from the creation of a right in rem.

Honorific object

An honorific object is taken to mean the goods of an essentially symbolic character which are awarded to a person in tribute to the activity carried out in fields such as the arts, the sciences, sports or public services, or in recognition of their merits on the occasion of a particular event. This concept takes over and clarifies the definition that appeared in 17° of article 50 octies of annexe IV to the CGI.

Identification

Identification, for the purposes of VAT, of a taxable person or of a non-taxable legal person in France or in another EU Member State means the holding of a number issued by the French authorities or by the competent authorities in the Member State concerned, under the conditions provided for by the equivalent provisions which are applicable within the territory of that other State. This article provides elements of definition for a concept which covers obligations that were provided for by the provisions of article 286 ter of the CGI.

Immovable property

Immovable property is defined in the code des impositions sur les biens et services by taking over article 13 ter of Council Implementing Regulation (EU) No 282/2011 of 15 March 2011 laying down implementing measures for Directive 2006/112/EC on the common system of value added tax, as amended. It thus has an autonomous definition for VAT purposes, different from the one deriving from the code civil. It falls under a transversal special scheme of VAT.

Imported goods relating to diplomatic or similar relations

Imported goods relating to diplomatic or similar relations means goods for which the scope of the privileges and immunities includes, for the importations of those goods, a zero rate of tax or any equivalent mechanism. This concept covers the scope of application that was covered by the provisions of 1°, 2°, 3° and 5° of I of article 262-00 bis of the CGI, even though these concern only supplies of goods and supplies of services, to the exclusion of importations. The provisions of 4° of I of article 262-00 bis of the CGI concerning certain armed forces are, for their part, recodified in article L. 244-2 of the CIBS and article L. 244-3 of the CIBS.

Industrial gold

Industrial gold means gold which takes the form of a raw material or of a semi-manufactured product and of which the purity is equal to or greater than 325 thousandths.

Initial invoice

The initial invoice means the first document or message, or set of documents or messages, issued by a supplier, or in his name and on his behalf, relating to one or more transactions carried out for consideration and recording the existence and the amount of any consideration for that transaction or those transactions, even where that transaction or those transactions are fictitious or that amount is inaccurate.

Input of output transactions

An input of output transactions means any goods or any supply of services acquired or received by a taxable person and intended to be used, processed, incorporated or consumed in the course of its activity.

An input is therefore an element entering the value chain, which serves as raw material, component, equipment or support service for the carrying out of the taxable person's transactions (sales, supplies of services). The VAT invoiced on that input constitutes deductible VAT to the extent that the input is actually used for transactions subject to VAT.

Input transaction

An input transaction refers to any transaction (supplies of goods, supplies of services, intra-Community acquisitions of goods, importations) acquired for consideration by a taxable person and located in the territory of taxation, as well as certain transactions treated as supplies of goods and supplies of services.

Where that transaction is an input of output transactions giving rise to a right of deduction, the tax charged on the input transaction is partially or fully deductible (CIBS, art. L. 221-2).

Instruments of a comparable nature

Instruments of a comparable nature mean instruments not covered by equity securities or debt securities, but having similar characteristics.

Intermediation

Intermediation means the legal relationship by which a person authorises an intermediary to act on its behalf with a view to carrying out a transaction of which it is the supplier or the customer. It is transparent where, in relation to third parties, the intermediary acts in the name of the person who appointed it. By contrast, it is opaque where the intermediary acts in its own name in relation to third parties. This article provides elements of definition for a concept previously defined by implication by the provisions of 1° of V of article 256 of the CGI.

Internal adjustment transactions

Internal adjustment transactions refer to two types of transactions treated as supplies of goods for consideration, allowing an adjustment of the amount of tax to be deducted. The following are covered:

Internal temporary admission of goods within the European Union

Internal temporary admission within the European Union (EU) means the presence of Union goods in the territory of an EU Member State for a period of not more than twenty-four months and under the same conditions as total relief from customs duties in the case of temporary admission. To that end, the conditions relating to establishment outside the customs territory of the EU are replaced by conditions relating to establishment outside the territory of temporary presence. This concept covers the scope which fell under the provisions of a of III of article 256 of the CGI and of a of 2° of II of article 256 bis of the CGI.

International commercial aircraft

The international commercial aircraft means the aircraft, within the meaning of article L. 6100-1 of the code des transports (C. transp.), used by a taxable person whose essential economic activity is the operation of aircraft with a view to carrying out flights between the territories of EU Member States or between those territories and third territories. This concept covers the definition which was set out by the provisions of 4° of II of article 262 of the CGI for the purposes of the exemption which that article established.

International commercial vessel

An international commercial vessel is taken to mean any vessel, within the meaning of article L. 5000-2 of the C. transp., where it is used for an economic activity carried out essentially by means of navigation outside the national territorial waters of an EU Member State, or for the purposes of fishing within those same waters, or for rescue or assistance at sea. This concept takes over the elements of definition that appeared in 2° of II of article 262 of the CGI.

Intra-Community acquisition

The intra-Community acquisition of goods means the obtaining, resulting from the intra-Community supply of goods, by the recipient from the supplier, of the right to dispose of one or more items of movable property as owner. This concept covers in part that which was covered by the provisions of article 256 bis of the CGI, in so far as it results from an editorial choice to distinguish, in the code des impositions sur les biens et services, the transactions which, by their nature, constitute intra-Community acquisitions (AIC) from those which are such by assimilation, as does article L. 211-53 of the CIBS, recodifying the provisions of 2° of II of article 256 bis of the CGI, which treats as such acquisitions the intra-Community transfers of goods referred to in article L. 211-44 of the CIBS.

Intra-Community acquisition made for consideration

An intra-Community acquisition is made for consideration where the intra-Community supply of goods is made for consideration by a taxable person. That acquisition is subject to the tax independently of the intra-Community supply of goods. This concept covers in part that which was previously covered by the provisions of article 256 bis of the CGI, in so far as it results from an editorial choice to distinguish, in the code des impositions sur les biens et services, the transactions which, by their nature, constitute intra-Community acquisitions (AIC) from those which are such by assimilation.

Intra-Community distance sale of goods

The intra-Community distance sale of goods means the distance sale of goods for which the transport is an intra-Community transport. This concept takes over the elements of definition that appeared in 1° of II bis of article 256 of the CGI.

Intra-Community journey of a means of passenger transport

The intra-Community journey of a means of passenger transport means any movement of that means of transport in the course of which passengers may embark and disembark at different places within the territory of taxation or within the territory of another Member State of the EU, without being able to embark or disembark in a third territory. The place of departure of the journey means the first of the places of embarkation. The place of destination of the journey means the last of the places of disembarkation. This concept takes over the elements of definition that previously appeared in paragraphs 2 to 4 of c of 5° of article 259 A of the CGI.

Intra-Community processing

The intra-Community processing of goods means the carrying out of work on, or valuations of, those goods in the territory of the temporary presence. This concept takes over the elements of definition that appeared in b of III of article 256 of the CGI and in b of 2° of II of article 256 bis of the CGI.

Intra-Community transport of goods

The intra-Community transport of goods means the transport of goods for which the place of departure and the place of destination are each situated within the territory of a Member State of the EU and for which the Member State of the EU of the place of departure and that of the place of destination are different. This concept takes over the elements of definition that appeared in the second paragraph of 3° of article 259 A of the CGI.

Intra-Community transport of goods following the importation of those goods

The intra-Community transport of goods following the importation of those goods (goods imported in transit) means, where the place of destination mentioned in article L. 211-124 of the CIBS is not situated within the territory of the Member State of the EU in which the importation is carried out, the part of the transport of the goods carried out from the territory of importation to that place of destination. By way of derogation from the last paragraph of article L. 211-37 of the CIBS, the intra-Community transport following the importation of goods is deemed to constitute an autonomous transport of goods distinct from the part of the transport coming from the third territory to the territory of importation.

Investment gold

Investment gold means gold in the form of a bar, ingot or wafer of a weight exceeding one gram and of a purity equal to or greater than 995 thousandths, or in the form of a coin of a purity equal to or greater than 900 thousandths, minted after 1800, which is or has been legal tender in its country of origin and the selling price of which does not exceed by more than 80 % the value of the gold it contains. The coins appearing in the list published pursuant to article 345 of Council Directive 2006/112/EC of 28 November 2006, as amended, are deemed to fulfil those conditions. This concept takes over the elements of definition that appeared in 2 of article 298 sexdecies A of the CGI.

Invoice

An invoice means any document or message issued by a supplier, or in his name and on his behalf, relating to one or more transactions carried out for consideration and recording the existence and the amount of any consideration for that transaction or those transactions, even where that transaction or those transactions are fictitious or that amount is inaccurate. An invoice also consists of any document or message which refers unambiguously to the document or message referred to in the preceding sentence, including after its issue. This concept appeared in 5 of I of article 289 of the CGI.

Land which has not been built on

Land which has not been built on means land which is neither land which has been built on nor building land.

Light works

Light works are works leading to a renovation of moderate scale of the immovable property to which they relate. They are therefore identified both by a positive condition (works of improvement, conversion, fitting-out or maintenance) and by a set of negative conditions (exclusion of cleaning works, of works relating to green spaces or to fossil-fuel boilers, as well as of works resulting in a new building or in a significant extension of the floor area).

This concept is used in relation to rates, where those works relate to dwellings (CIBS, art. L. 213-245).

Long-term hiring of a means of transport

The long-term hiring of a means of transport means hiring under which the customer has the means of transport at his disposal continuously for a period exceeding thirty days. This concept takes over a contrario the elements of definition that appeared in a of 1° of article 259 A of the CGI.

Low-value consignment

Goods imported in low-value consignments means those contained in consignments of an intrinsic value not exceeding 150 €. Intrinsic value is taken to mean within the meaning of 48 of article 1 of Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain provisions of the Union Customs Code, as amended. This concept appeared in a of 2° of V of article 256 of the CGI.

Low-value goods

Low-value goods are an item whose value does not exceed a threshold determined by order of the minister responsible for the budget, within the limit of 100 € or, in the event of transfers of several items of the same nature in the course of the calendar year, of their cumulative value for the assessment of that limit. Low-value goods may also be a physical medium for the commercial presentation of goods, a service or a brand intended for the retailer at the point of sale and whose value does not exceed a threshold determined by order of the minister responsible for the budget, within the limit of 120 €. Lastly, an object whose function is to ensure the promotion or the marketing of goods or services supplied by the transferor in the course of his economic activities also constitutes low-value goods. For the purpose of clarity and simplicity, this definition covers the concept of “low-value gifts”, previously laid down by the provisions of 1° of 1 of II of article 257 of the CGI, as well as the concept of “very low-value goods”, previously laid down by the provisions of 3° of 2 of IV of article 206 of Annex II to the CGI, in so far as those concepts met one and the same definition.

Means of transport

Means of transport is taken to mean any vehicle, device or apparatus designed for the movement of persons or goods and capable of being used for that purpose autonomously or by being pushed or towed by another vehicle, device or apparatus.

Means of transport (intra-Community trade in new means of transport)

Means of transport is taken to mean the craft intended for the transport of persons or goods which falls within the category of motorised land vehicles with a capacity exceeding 48 cubic centimetres or a power exceeding 7,2 kilowatts; or within the category of floating craft the length of which exceeds 7,5 metres, other than an international commercial vessel; or within the category of aircraft within the meaning of the first paragraph of article L. 6100-1 of the C. transp. the total take-off weight of which exceeds 1 550 kilograms, other than an international commercial aircraft. This concept takes over the elements of definition that appeared in 1 of III of article 298 sexies of the CGI.

Mixed input

An input is said to be “mixed”:

Multi-purpose voucher

The multi-purpose voucher (BUM) means the voucher which is not a single-purpose voucher. A voucher whose elements of taxation (territoriality, rate, etc.) are not known at the time of its issue is thus a multi-purpose voucher. The sale of the multi-purpose voucher is a non-event for VAT purposes. This concept takes over, a contrario, the elements of definition that were codified in b of 3 of article 256 ter of the CGI.

Natural gas supplied through a network

Natural gas supplied through a network means any gaseous product supplied by means of a natural gas system situated within the territory of taxation or the territory of another EU Member State, within the meaning of 3 of article 2 of Directive (EU) 2024/1788 of the European Parliament and of the Council of 13 June 2024, as amended, on common rules for the internal markets for renewable gas, natural gas and hydrogen, amending Directive (EU) 2023/1791 and repealing Directive 2009/73/EC, or by a network connected to that natural gas system.

Network energy

Network energy means electricity, natural gas supplied through a network and heat or cold supplied through a network.

New goods

New goods means goods whose function, assessed in the light of the use that may be made of them, differs from that of the processed good or goods.

New means of transport

New means of transport is taken to mean one which has not been placed in service or which has not been used. New means of transport also refers to a motorised land vehicle placed in service six months ago at most or which has not travelled more than 6 000 km. For floating craft, they must have been placed in service three months ago at most or their use must not exceed 100 hours of navigation. Finally, as regards aircraft, they must have been placed in service three months ago at most or their use must not exceed 40 hours of flight. This concept takes over the elements of definition that appeared in 2 of III of article 298 sexies of the CGI.

Non-profit-making body

A non-profit-making body means a legally constituted body whose object, as it appears from its legal form and its constitutive rules, does not include the systematic pursuit of profit and whose operating profits, if any, are allocated to the maintenance and improvement of the transactions carried out, without being capable of being distributed to the members of the body. The share of the assets allocated to a person or to that person's successors in title and exceeding that person's contribution is treated as a profit. This concept takes over the elements of definition that appeared in paragraphs 12 and 13 of 1° of 7 of article 261 of the CGI.

Non-taxable legal person

The non-taxable legal person means the legal person which is neither a taxable person nor an entity dependent on a taxable person.

Normal destination of a good

The normal destination of a good means the use habitually and generally made of that good, having regard to its objective characteristics, irrespective of its actual use by the customer.

This concept is relied on to establish the scope of certain derogating VAT rates, in particular in the food and agriculture sectors.

Output transaction

An output transaction refers to any supply of goods, any supply of services or any transaction treated as such carried out by an entity in the course of its economic and non-economic activities.

Personal goods transported to or from the territory of taxation

Personal goods transported to or from the territory of taxation means goods reserved for the personal or family use of a private individual within the meaning of article L. 211-25 of the CIBS, including where they are intended to be offered by the latter as a gift, and whose transport from or to the territory of taxation is of an occasional nature, and where neither the nature nor the quantity of the goods concerned makes it possible to presume their resale or another use in the course of carrying out an economic activity. This concept takes over the definition that was codified in 1° of article 50 septies de l'annexe IV au CGI.

Place of establishment of the business

The place of establishment of the business of a taxable person or of a non-taxable legal person means the establishment where the functions of central administration of all the activities which he or she carries out are performed. It is determined having regard, principally, to the place where the essential decisions concerning the general management of the activities are taken and, secondarily, to the place of the registered office and the place where the management meets. This concept takes over the elements of definition that appeared in article 259 of the CGI, which constituted the transposition of the provisions of article 44 of Council Directive 2006/112/EC of 28 November 2006, as amended, and of article 45 of Council Directive 2006/112/EC of 28 November 2006, as amended, as clarified by article 10 of Council Implementing Regulation (EU) No 282/2011 of 15 March 2011, as amended.

Place of residence

The place of residence means the permanent address or, where the latter does not correspond to reality, the usual residence.

Permanent address is to be understood as the address at which a natural person declares to the authorities that he or she lives.

Usual residence is to be understood as the place where a natural person usually resides by reason of personal and occupational ties. Where there are no occupational ties, or where the occupational ties are in a place different from the personal ties, account is taken of the personal ties revealing close links between the natural person concerned and a place where he or she lives.

These concepts are intended to provide elements of definition for the concept of place of residence for the purposes of the rules on territoriality, previously covered by the provisions of article 259 of the CGI.

Price reduction

A price reduction means any form of reduction of the consideration obtained or to be obtained by the supplier from the recipient or from a third party, including where it is implemented by a total or partial refund of consideration already received. Any part of the consideration to be obtained that has become definitively irrecoverable for the supplier is treated as a price reduction. This concept covers the one that appeared in II of article 267 of the CGI, while providing greater clarification.

Private body

The private body means any body other than a public body, including where its activity falls within the exercise of public authority.

Private individual

The private individual means the natural person who is not a taxable person but also the independent entity having no natural or legal personality and which is not a taxable person.

Producer

The producer means the taxable person who produces the audiovisual work within the meaning of article L. 132-23 of the CPI or the phonogram within the meaning of the first paragraph of article L. 213-1 of the CPI.

Professional transaction

A professional transaction is taken to mean the transaction carried out by a lawyer or a lawyer at the Conseil d'État and the Cour de cassation in the course of the activity defined by the rules applicable to his profession, the supply by the author of a work of the mind, other than a work of architecture, the assignment, by the author of a work of the mind, of an economic right recognised by law in respect of that work and any transaction relating to the exploitation of an economic right recognised by law to a performer. This concept takes over the elements of definition that appeared in B of I bis of article 293 B of the CGI setting out the transactions to be taken into account for the purposes of the turnover thresholds of the VAT exemption scheme for small enterprises applicable to lawyers and to authors of works of the mind.

Proportion of actual use for the purposes of output transactions relating to economic activities

The proportion of actual use for the purposes of output transactions relating to economic activities (corresponds to the taxable-use coefficient) makes it possible to determine the proportion of deductible input tax borne by a mixed input of economic and non-economic activities. It is based on actual criteria that best reflect the use of each good or service for economic activities.

Where the taxable person so opts, that proportion may be determined in a single manner for all goods and services that are mixed inputs of economic and non-economic activities (CIBS, art. L. 223-10).

Public body

The State, the territorial authorities and their groupings, as well as any other entity which may be treated as such having regard to its link with the exercise of public authority and to its lack of autonomy vis-à-vis other public bodies, constitute public bodies.

Publisher

A publisher means the taxable person who either concludes with the author, or his successors in title, a publishing contract within the meaning of article L. 132-1 of the code de la propriété intellectuelle (CPI), or is a publishing undertaking within the meaning of the second paragraph of article 2 of amended Law no. 86-897 of 1 August 1986 reforming the legal regime of the press.

Reallocation of capital goods

The reallocation of capital goods refers to a set of events reflecting a major change in the use of those goods during their deduction period, thereby entailing an overall adjustment of the tax initially deducted in respect of that input.

The reallocation of goods brings the initial deduction period of those goods to an end (CIBS, art. L. 223-37) and, where the goods remain capital goods used for economic activities, opens a new deduction period (CIBS, art. L. 223-39) covering the residual tax.

Recording of VAT

The recording of VAT designates the formal obligations necessary for the justification of certain elements relating to VAT, in particular its amount (taxable amount, exemption, rate, amount of deductible tax, etc.).

Those formal obligations are primarily the return (in particular return n° 3310-CA3-SD [CERFA n° 10963] available on impots.gouv.fr) and invoicing, but they also cover formalities aimed at making tax data more reliable (keeping accounts or registers, transmitting information to the administration).

Reduction of the right of deduction

The reduction of the right of deduction refers to one of the two types of adjustment of the deductible tax, arising from events subsequent to the chargeable event of the right of deduction, mentioned in article L. 224-7 of the CIBS, article L. 224-8 of the CIBS and article L. 224-9 of the CIBS.

This type of adjustment generates a debt of the taxable person to the Treasury. He is deprived of all or part of the tax charged on the goods or services concerned which he initially deducted, the amount of the reduction being recorded on the turnover return on line 15 of return no. 3310-CA3-SD (CERFA no. 10963) available on impots.gouv.fr.

Remunerative transaction

A remunerative transaction means a transaction carried out in direct competition with transactions which are not exempt pursuant to article L. 213-81 et seq. of the CIBS and essentially intended to procure additional revenue. The profit-making character, within the meaning of article L. 213-81 of the CIBS, of the aim of the body which carries out the transaction has no bearing on the assessment of the remunerative character of the transactions carried out.

Residual tax

Residual tax means the amount of tax attributed to the years remaining until the end of the deduction period of movable or immovable capital goods in the event of a change in the use or of a reallocation of those goods.

Deductible residual tax refers to all or part of that residual tax which is actually deductible.

Right to a reduction of tax

The right to a reduction of tax means one of the two types of adjustment of the tax, arising from events subsequent to the chargeability of the tax, referred to in article L. 214-11 et seq. of the CIBS. The cancellation of a transaction by the parties, for example, gives rise to a right to a reduction of tax.

This type of adjustment generates a claim of the taxable person against the Treasury. It leads to reducing or even cancelling the tax initially due, the amount of the reduction being recorded on the turnover return (on line 21 of return no. 3310-CA3-SD [CERFA no. 10963] available on impots.gouv.fr).

Sample

A sample means a specimen of a product supplied without consideration, which is intended to promote the sales of that product and which makes it possible to assess the characteristics and qualities of that product without giving rise to final consumption other than that inherent in such promotional operations. This concept was referred to in 1° of 1 of II of article 257 of the CGI and in 3° of 2 of IV of article 206 of Annex II to the CGI without being clearly defined.

Second-hand goods

Second-hand goods mean tangible movable property which has been used, including by the mere fact that it is a component of other goods which have themselves been used, which has retained the functionalities it possessed before that use or, if its functionalities have been impaired during the use, they have been restored or are capable of being restored, and whose modifications, if any, do not go beyond the restoration of its functionalities and do not confer on it a value higher than that which it possessed before its use. Second-hand goods are not works of art, collectors' items or antiques and do not fall within the categories of metals and stones which, having regard to their intrinsic value, have the functionality of representing a financial value. Where goods made up of other goods have no functionalities of their own, including because they have irremediably lost them during their use, their classification as second-hand goods is assessed having regard to the functionalities of their components. This concept covers the goods which were covered by the provisions of I of article 98 A of Annex III to the CGI.

Sectoral schemes

Sectoral schemes refer to VAT schemes which derogate from the rules of the general scheme or of the right of deduction in respect of several of the constituent elements of the tax, by reason of the particular features of one or more specific sectors of activity.

Service closely linked to the practice of sport

A service closely linked to the practice of sport means a service which, in itself, ensures the practice of a physical activity by the recipient or which is necessary for the practice of a physical activity and is not income-generating.

Short-term hiring of a maritime means of transport

The short-term hiring of a maritime means of transport means hiring under which the customer has the maritime means of transport at his disposal continuously for a period not exceeding ninety days. This concept takes over the elements of definition that appeared in a of 1° of article 259 A of the CGI.

Short-term hiring of a means of transport

The short-term hiring of a means of transport means hiring under which the customer has the means of transport at his disposal continuously for a period not exceeding thirty days. This concept takes over the elements of definition that appeared in a of 1° of article 259 A of the CGI.

Simplified discharge of goods of the aeronautical sector

The simplified discharge of goods of the aeronautical sector means, for goods falling within the aeronautical sector and placed under the inward processing IM/EX procedure or which are assigned to the manufacture, repair, modification or processing of goods placed under that inward processing procedure, the situation between the discharge of the processing procedure and the supply of the aircraft, spacecraft or related equipment. This concept takes the elements of definition that were codified in 1° of I of article 277 A of the CGI.

Single annual flat-rate deductible proportion

The single annual flat-rate deductible proportion (taxation coefficient) makes it possible to determine the proportion of deductible input tax borne by a mixed input of non-exempt and exempt transactions. It is flat-rate, in the sense that it is based on the total annual amount of non-exempt output transactions, and single, in the sense that it applies without distinction to all mixed inputs of non-exempt and exempt transactions.

Where the taxable person so opts, that proportion may be extended to all non-mixed inputs of his economic activity (CIBS, art. L. 223-15).

Single-purpose voucher

The single-purpose voucher means the voucher for which all the underlying transactions are located in the same territory and either are all subject to the same rate, or are all the subject of a derogating exemption. The sale of the single-purpose voucher is one and the same as the carrying out of the underlying transaction. This concept takes over the elements of definition that were codified in b of 3 of article 256 ter of the CGI.

Social assistance

Social assistance means assistance, the provision of care, other than care having a therapeutic purpose, and support, where they are directly linked to the state of fragility or of physical, mental or economic dependence of a specified person, including those falling within the protection or the support of young persons, as well as the non-market supply of goods or services essential to natural persons.

Supplier establishment

A supplier establishment means, for a given transaction carried out for consideration, the place of establishment of the business of the supplier of that transaction. By way of derogation, where the transaction is carried out independently using the resources of a fixed establishment, the supplier establishment means that other establishment. In the absence of a fixed establishment, the place of residence is treated as a supplier establishment. This article provides elements of definition for a concept previously referred to in article 259 of the CGI and corresponding to the concept of the fixed establishment of the supplier within the meaning of article 45 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, as amended and of the provisions of paragraph 2 of article 11 of Council Implementing Regulation (EU) No 282/2011 of 15 March 2011, as amended.

Supply of goods

The supply of goods means the transfer by a supplier to a customer of the right to dispose of one or more items of tangible property as owner. This concept takes over the elements of definition that appeared in 1° of II of article 256 of the CGI.

Supply of goods made for consideration

The supply of goods made for consideration by a taxable person means the transaction falling within economic activities whose predominant element, qualitatively and quantitatively, is the transfer of the right to dispose of one or more items of tangible property as owner. This concept takes over the elements of definition that appeared in 1° of II of article 256 of the CGI and in I of article 257 ter of the CGI.

Supply of goods with importation

The supply of goods with importation means the transaction for the purposes of which the transport of the goods, from a third territory, to the territory of taxation or the territory of another EU Member State, is organised.

Supply of goods with transport

The supply of goods with transport means the supply of goods for which transport is organised by the supplier, by the customer or by a third party.

Supply of services

The supply of services means the legal relationship between a supplier and a customer relating to elements other than a supply of goods. This concept takes over the elements of definition that appeared in 1° of IV of article 256 of the CGI.

Supply of services for consideration

The supply of services for consideration by a taxable person means the transaction relating to economic activities which is not a supply of goods for consideration. This concept takes over the elements of definition that appeared in 1° of IV of article 256 of the CGI.

Tax borne by an input transaction

The tax borne by an input transaction refers to the tax which is chargeable in respect of that input transaction, irrespective of the person liable for payment of that tax.

Tax mandate

The tax mandate is taken to mean the act by which a taxable person fulfils the VAT obligations of another taxable person relating to certain transactions.

Taxable dealer

The taxable dealer means the taxable person who, in the course of his economic activity, purchases or applies for the purposes of his business, with a view to their resale, second-hand goods, works of art, collectors' items or antiques, including where he acts as an undisclosed intermediary and including where his supplier is not a taxable person. Article L. 252-5 of the CIBS makes it possible to define this concept explicitly, relying on the definition laid down by the provisions of 5 of 1 of article 311 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, as amended (the “VAT Directive”).

Taxable person

The taxable person means the entity which carries out one or more economic activities independently, in so far as that entity acts within the framework of that activity or those activities. This concept takes over the elements of definition that appeared in the first paragraph of article 256 A of the CGI.

Temporary presence of goods at the place of destination

The temporary presence of goods at the place of destination means the situation in which goods coming from a member territory of the EU are transported to another Member State of the EU in which they remain temporarily before being transported to the first of those States, and of which a single taxable person disposes as owner throughout the whole period of the temporary presence, the object of which is the intra-Community processing of the goods within the meaning of article L. 211-115 of the CIBS, their temporary use within the meaning of article L. 211-116 of the CIBS or their temporary admission internal to the EU within the meaning of article L. 211-117 of the CIBS.

Temporary use of goods

The temporary use of goods means their use, within the territory of temporary presence, by a taxable person established within the territory from which the goods come, for the purposes of making supplies of services for consideration by that taxable person. This concept covers what was covered by the provisions of a of III of article 256 of the CGI.

Transaction carried out for consideration

A transaction carried out for consideration is taken to mean a legal relationship between a supplier and a customer in the course of which the supplier of the transaction provides an identifiable advantage to the customer and obtains, from the customer or from a third party, consideration capable of being expressed in money. There must be a direct link between the advantage provided and the consideration obtained. This concept takes over the elements of definition that appeared in I of article 256 of the CGI.

Transaction closely linked to welfare

A transaction closely linked to welfare is taken to mean the supply of goods or the supply of services which itself provides the goods or services which constitute welfare, or which is non-remunerative and necessary for the delivery of welfare, or for its quality.

Transaction giving rise to the right of deduction of input tax

A transaction giving rise to the right of deduction of input tax means an output transaction which does not fall under a derogating exemption or which, being located outside France, would not fall under such an exemption if it were located in France.

Transaction of a non-commercial character

A transaction of a non-commercial character is taken to mean a transaction which meets one of the following two conditions:

Transaction relating to economic activities

A transaction relating to economic activities means the supply of goods or services by the supplier to the customer, carried out for consideration by the supplier in the course of the pursuit by the latter of an economic activity. The supplier and the customer are independent entities. A transaction which has the effect of transferring the ownership of tangible movable property, which results from a requisition by the public authority or from the terms of a law or a regulation, and for which compensation having a direct link with that transfer is paid to the person divested of the ownership, is also a transaction relating to economic activities. This concept takes over the elements of definition that appeared in II of article 256 of the CGI.

Transaction relating to the representation of collective interests

A transaction relating to the representation of collective interests means the supply of services directly connected with the collective defence of the moral or material interests of a group of persons, or the supply of goods necessary for the abovementioned services or for their quality and which is not remunerative. Transactions which procure specific economic advantages for all or part of the persons whose interests are represented do not fall within such transactions. This concept takes over the elements of definition that appeared in 9° of 4 of article 261 of the CGI.

Transaction supplied from abroad

A transaction supplied from abroad is taken to mean the supply of goods or the supply of services, other than a transaction treated as such, where it is located in one of the three territories of taxation mentioned in article L. 211-7 of the CIBS, where the place of establishment of the supplier's business is not located in any of those territories of taxation and where the establishment supplying the transaction, when it is different from that place of establishment, is not located in any of those territories of taxation.

Transaction value

The transaction value means that mentioned in Article 70 of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code, as amended.

Transactions “treated as”

Transactions “treated as” refer to events which, notwithstanding the fact that they do not meet the definition of the various taxable transactions, receive that classification by express provision of law, and are thus subject to the tax. The following may thus be distinguished:

Transfer of an autonomous economic activity

The transfer of an autonomous economic activity, formerly described as the transfer of a totality of assets, designates the transfer of a set of elements whose purpose is the continuation of an economic activity, whatever it may be, which is sufficient to enable the transferee to carry on that activity autonomously.

The transactions carried out in the context of that transfer are deemed not to have taken place, and the transferee is responsible for continuing any adjustments of the tax charged on the goods and services transferred.

Transport between two territories

Transport between two territories means transport whose origin is in one of those territories and whose destination is in the other of those territories, whatever other territories may be crossed.

Transport of goods

The transport of goods arranged by an entity means the movement of those goods between a determined place of departure and a determined place of destination, carried out by that entity or by another person acting on its behalf. This concept takes over the elements of definition that appeared in paragraphs 2 and 3 of 3° of article 259 A of the CGI.

Transport within a territory

Transport within a territory means transport whose origin and destination are in that territory, whatever other territories may be crossed.

Travel agent

A travel agent is taken to mean the taxable person who offers, among a range of travel options for which he may provide information or advice, accommodation or the transport of persons, or a combination of the transport of persons and accommodation relating to one of those travels and directly benefiting the customer of those services. This definition is intended to clarify the concept of travel agent for the application of the provisions of the special scheme for travel agents, previously designated “travel agency” by the provisions of III of article 257 ter of the CGI.

Unsold goods

Unsold goods mean new goods which, being intended to be the subject of a supply made for consideration by a taxable person but the supply of which has ultimately not taken place, are supplied without consideration by the supplier of the initial supply that was not carried out to an association recognised as being in the public interest pursuant to article 10 of the amended Law of 1 July 1901 on the contract of association, an association governed by the local law maintained in force in the departments of Moselle, Bas-Rhin and Haut-Rhin whose mission is recognised as being in the public interest pursuant to b of 1 of article 238 bis of the CGI, a person authorised to receive public contributions intended for the implementation of food aid pursuant to article L. 266-2 of the code de l'action sociale et des familles and a body mentioned in 1° of article L. 213-22 of the CIBS carrying out humanitarian, charitable or educational activities in a third territory where the conditions provided for in 3° of the same article are met. This article is intended to provide elements of definition for a concept previously mentioned in article 273 septies D of the CGI.

Voucher

The voucher is an instrument by which legal relationships are established between different entities. On the one hand, the voucher is linked to a determined set of supplies of goods or supplies of services that may be carried out, specified either on the instrument embodying that legal relationship or in a document relating to it; on the other hand, the transfer of the voucher confers on the acquirer the right to obtain, for the acquirer's benefit, all or part of the goods to be supplied or the services to be rendered, possibly in instalments. As regards the issuer of the voucher, this is the taxable person in whose name the instrument is created. This concept takes over the elements of definition that were codified in a of 3 of article 256 ter of the CGI.

Work of art

A work of art is taken to mean the goods which meet the conditions determined by order of the minister responsible for the budget, relating to the material conditions of the artist's involvement and to a maximum limit on the number of copies, and which fall within the category of works of art classified as such by chapter 97 of the combined nomenclature mentioned in article L. 111-3 of the CIBS, tapestries or wall textiles, ceramic copies, enamels on copper or photographs. This concept covers the elements of definition that appeared in II of article 98 A of annexe III to the CGI.

Works on immovable property

Works on immovable property constitute a broad category of works relating to immovable property. It brings together both works resulting in a new building and the demolition of a building, refurbishment works (conversion, improvement or fitting-out) and works consisting in the incorporation, installation or removal of a significant element of a building within the meaning of 3° and 4° of article L. 231-2 of the CIBS.

The completion of works on immovable property is treated as a supply of goods where the acquisition of the immovable property or of the works would not have given rise to a full right of deduction. The transaction is then classified as an internal adjustment transaction within the meaning of article L. 221-21 of the CIBS.