France: Updated administrative guidelines for VAT treatment of composite supplies

Guidance under article 257 ter of the General Tax Code

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July 18, 2025

The tax authorities released updated administrative guidelines for the value added tax (VAT) treatment of composite supplies under article 257 ter of the General Tax Code, influenced by Finance Act No. 2020-1721.

The guidelines clarify principles, single supply determination, VAT regimes for mixed elements, treatment for complex supplies like insurance and banking services, and services taxable at reduced rates.


For further information, contact a KPMG tax professional in France:

Arnaud Moraine | arnaudmoraine@kpmgavocats.fr

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