The fact that the VAT taxable regime provided by article 257-7 is not applicable, according to paragraph 2 of this article, to operations on buildings completed for more than five years, cannot lead these operations to be part of the field of application of article 257-6, even if they are performed by a person having the position of estate agent in connection with other activities.

Indeed, the result of the preliminary works of the law dated January 6, 1996 (from which article 257-6 of the French General Tax Code also comes) is that the VAT taxation regime on the margin/mark up provided by this article can only apply to usual operations of purchase-resale of buildings as they are (CE, March 13, 1996, no.112391, 8e and 9e s.-s.; SCI "Le Mallaury"; RJF 5/96, no.571).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be brought about your specific circumstances.

For additional information contact Claire Acard on 33/(1)/55 61 10 10, Lionel Benant on 33/78.63.72.35, Joel Fischer on 33/78.63.72.58, or Laurent Borey on 33/(1).55 61 10 10 or enter text search: "ARCHIBALD ANDERSEN Profile".

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