CVAE – Tax consolidation litigation – Repayments can still be obtained

French companies have to file claims in order to obtain the restitution of the French CVAE (Cotisation sur la valeur ajoutée des entreprises) paid in 2016 and 2017.

The French Constitutional Court declared on May 19, 2017 that the difference in treatment to the detriment of com-panies members of a tax consolidated group for the calculation of the turnover used to assess the French CVAE (article 1586 ter, I bis of the French Tax Code) is contrary to the French Constitution (decision n° 2017-629 QPC of May 19, 2017 SARL FB Finance).

Regarding the time effects of this decision, the French Constitutional Court judged that:

  • for the future: the law is repealed at the date of the decision
  • for the past: this decision applies to new claims that will be filed within the limits fixed by the French Tax Code to lodge a claim in CVAE matters

Therefore, companies that have not yet filed claims will be able to obtain the repayment of the CVAE paid in 2016 and 2017 if they file a claim before the French Tax administration, and no later than December 31, 2017 for the CVAE paid in 2016.

Michel Guichard

Michel Guichard, as a Partner, was responsible for the Indirect Tax (VAT Customs) practice and then for the Tax Litigation practice dedicated to assisting clients in national and EU litigation. […]