VAT on animal foodstuffs and agricultural inputs: update - Lexis nexis

We are here to announce the publication of our new article entitled “Value added tax - BoFIP relating to the rates applicable to animal foodstuffs and to inputs for food production and agricultural production”. Written by Grégoire Person and Thomas Le Boucher, this article offers an in-depth analysis of recent BoFIP updates following a public consultation.

Posted in Tax Law No. 9, February 29, 2024, Act. 56, this article looks at the changes made by the Finance Law for 2023 concerning the extension of the reduced VAT rate of 5.5% to products intended for animal feed consumed by humans, as well as to products of agricultural origin, fishing, fishing, fishing, fish farming and poultry farming used for agricultural production.

The tax authority published its final comments on February 7, 2024, providing details on the concept of the “normal destination” of a product. This update allows taxpayers to determine the VAT rate according to the nature of the product rather than its intended use by the customer. Administrative tolerance is granted until September 30, 2024 for those who have applied an incorrect rate.

Key points covered include:

• Extension of the reduced rate by 5.5% : products intended for animal feed and agricultural products used for production.
• Clarifications on the “normal destination” : making it possible to better determine the applicable VAT rate.
• Details on silviculture : who can benefit from the rate applicable to agricultural production.
• Comments on human food : including details on the products concerned.

This publication is essential for understanding the new fiscal guidelines and their impact on the animal feed and agricultural production sectors. For more information, see the PDF version of the article Hither.