Part One: State taxes

I. – 1. The value added tax that has been charged on the price components of a taxable transaction is deductible from the value added tax applicable to that transaction. 2. The right to deduct arises when the deductible tax becomes chargeable to the person liable. However, persons who carry out occasional transactions subject to value added tax only exercise the right to deduct at the time of supply. 3….

1. Value added tax which has been levied in connection with sales or services shall be imputed or refunded under the conditions provided for in Article 271 when these sales or services are subsequently cancelled or terminated or when the corresponding receivables have become definitively irrecoverable. However, the tax may be charged or reimbursed from the date of the court decision pronouncing the judicial liquidation. The imputation or refund is…

1. Decrees in the Council of State shall determine the conditions of application of Article 271. They set out in particular: – the date on which the deductions may be made; – the adjustments to which they must give rise; – the procedures according to which the deduction of tax charged on goods or services which are not used exclusively to carry out taxable transactions must be limited or reduced….

Value added tax relating to purchases, imports, intra-Community acquisitions, deliveries and services carried out from 1 January 1993 ceases to be excluded from the right to deduct in respect of vehicles or equipment used exclusively for driving lessons.

Taxable persons may deduct the value added tax relating to electricity consumed by land vehicles excluded from the right to deduct, where such vehicles are used for the purposes of transactions giving rise to the right to deduct and are operated exclusively by means of electrical energy. The same applies when such vehicles are leased and the tax relating to this lease is not deductible.

Value-added tax relating to purchases, imports, intra-Community acquisitions, deliveries and services carried out from 1 January 2006 ceases to be excluded from the right to deduct in respect of off-road vehicles or machinery assigned exclusively to the operation of ski lifts and ski areas, in accordance with the conditions laid down by decree.

A regularisation of the tax initially deducted and charged on a good is not made for new unsold food and non-food items that have been donated to associations recognised as being in the public interest and of a general humanitarian, educational, social or charitable nature under conditions laid down by decree. .