In a decision of 25 November 1994, nø 160335, the French Administrative Supreme Court (Conseil d'Etat) specified that an institution financed by an excise tax can be subject to VAT only if there is a direct link between the excise tax paid and the services provided by the institution to the excise tax payer. This decision, confirming previous Supreme Court case law, mitigates the Instruction of 8 September 1994 issued by the Service de la L‚gislation Fiscale which asserts that operations directly financed by an excise tax are outside the scope of VAT.

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