The 1995 Finance Act and a decree published on 27 January 1995 has modified the rules relating to the special tax payable by operators of retail premises in excess of 400 square meters. The tax is now payable when the annual turnover exceeds FF 3 million (as opposed to the previous threshold of FF 500,000).
The law and decree have modified the rates of the tax. The tax is levied on the number of square meters used for retail sales to which the public has access. The rate of the tax depends upon the turnover per square meter. The maximum rate is now FF 83.5 per square meter where the annual turnover per square meter exceeds FF 80,000. The tax is reduced by 30% for certain specific trades where an "abnormally large" sales area is required, namely, furniture, motor vehicles, agricultural machinery, construction materials. These changes are of interest to retailers rather than to landlords since it is the former who are liable for the tax.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
