BOOK VI: FINANCIAL AND ACCOUNTING PROVISIONS

When a local authority, public establishment or grouping uses a capital asset for the purposes of an activity that ceases to be subject to value added tax, it may obtain a payment from the Value Added Tax Compensation Fund equal to the fraction of the tax relating to this same asset that it was required to repay in application of the rules laid down for persons who cease to carry…

As from 1 January 1980, sums paid for the reimbursement of value added tax paid on their investment expenditure by the Value Added Tax Compensation Fund are entered in the investment section of the budget of the beneficiary local authority, establishment or body. However, by way of exception and insofar as they exceed the total expenditure shown in the investment section, they may be entered in the operating section of…

I.-Until 31 December 2001, allocations from the Value Added Tax Compensation Fund are determined by applying a flat-rate compensation rate of 16.176% to actual investment expenditure, as defined by decree of the Conseil d’Etat. In 2002, the flat-rate compensation rate was set at 15.656%. From 2003, this rate is set at 15.482%. The flat-rate compensation rate of 15.482% is applicable to eligible investment expenditure incurred from 1 April 2000 by…

Fixed assets transferred to a third party that is not one of the local authorities or establishments benefiting from the Value Added Tax Compensation Fund do not give rise to an allocation from the fund. Fixed assets entrusted as soon as they are completed or acquired to a third party that is not one of the local authorities or establishments benefiting from the Value Added Tax Compensation Fund and carrying…

The procedures for the reimbursement of allocations from the Value Added Tax Compensation Fund by local authorities or establishments benefiting from the said fund are defined by decree in the Conseil d’Etat.

Specific State subsidies calculated on a pre-tax amount are not deducted from actual investment expenditure taken into account for the calculation of allocations from the Value Added Tax Compensation Fund.

Subject to the provisions of article L. 1615-7, the financing of a public facility intended to be incorporated into the assets of a local authority or grouping, under the conditions set out in article L. 300-5 of the town planning code, opens the right to benefit from the Value Added Tax Compensation Fund. The right to benefit from the Fonds de compensation pour la taxe sur la valeur ajoutée (Value…

The territorial authority or public establishment that has entered into a contract provided for in article L. 1414-1 benefits from the VAT compensation fund on the portion of the remuneration paid to its co-contractor corresponding to the investment made by the latter for the purposes of an activity not subject to VAT. The portion of the remuneration corresponding to the investment is that indicated in the clauses of the contract…

The seventh and eighth paragraphs of Article L. 1615-2, the second paragraph of Article L. 1615-3, Articles L. 1615-7, L. 1615-10, L. 1615-11 and L. 1615-12 as well as the fourth paragraph of I of Article L. 1511-8 only apply to expenditure incurred up to the 2020 financial year.