CHAPTER V : Value added tax compensation fund

I.-The allocations made each year by law from the resources of the Local Authorities’ Value Added Tax Compensation Fund are intended to compensate for the value added tax paid by local authorities and their groupings on their investment expenditure as well as on their expenditure for: 1° Maintenance of public buildings and roads; 2° The maintenance of networks paid for from 1 January 2020; 3° The provision of cloud computing…

Resources intended for the Fonds de compensation pour la taxe sur la valeur ajoutée, referred to in Article L. 1615-1, are distributed among the regions, départements, communes, the Lyon metropolitan area, their groupings, their régies, departmental and territorial fire and rescue services, communal social action centres, school funds, the Centre national de la fonction publique territoriale and the centres de gestion des personnels de la fonction publique territoriale in proportion…

When a territorial authority, a public establishment or a grouping has obtained the benefit of the Value Added Tax Compensation Fund in respect of a capital asset and this asset is used for the purposes of an activity which, subsequently, is subject to this tax, it is required to repay to the State an amount equal to the tax relating to this same asset which it was able to deduct…

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…