Decision by the Bordeaux Administrative Court of Appeal regarding the VAT treatment of furniture for a real estate investor
A real estate developer had sold several houses, and the notarized deeds of sale for these properties listed a number of pieces of furniture valued at 21,300 euros.
administration subject the sale of this furniture by the real estate dealer to VAT. The dealer, however, argued that the sale of this furniture was exempt from VAT.
The Bordeaux Administrative Court of Appeal has ruled in favor of the taxpayer, finding that (i) the furniture constitutes used goods, (ii) the company’s furnished rental business was exempt from VAT, and (iii) the tax regime governing the sale of used goods previously used by the seller for business purposes is not limited solely to fixed assets.
It therefore ruled that the sale of the furniture was indeed exempt from VAT.