Does the reduced VAT rate apply to a decommissioned campground?

A campground was subject to a tax audit, following whichadministration issued a VAT assessment.

administration took the view that, since the campground had not been classified since 2017, it could not apply the reduced VAT rate provided for in Article 256 of the General Tax Code, which is limited to those holding such a classification.

The dispute was brought before the Administrative Court of Appeals.

After rejecting the argument that the classification was issued by the prefectural authority, the court ruled that applying a differentiated rate to campgrounds based on whether or not they are classified does not undermine competition.

She will nevertheless point out that, in this specific case, the campground had been classified between 2012 and 2017 and that the company had taken steps to renew its classification. The renewal process had, however, been delayed due to“various circumstances related to the need to provide an official order justifying the number of sites, cancellations of inspection appointments, and the inability to schedule these appointments due to the campground’s annual closure periods or a total or partial closure resulting from the COVID-19 health crisis.”

The Court will also note that the operating conditions of the campground did not change during the years under review, namely from 2017 to 2020.

It therefore ruled that the campground was entitled to the reduced VAT rate and reversed the assessment.

CAA Nantes, Jan. 20, 2026, No. 25NT00929Thisupdate is provided by Mispelon Avocat, a law firm specializing in tax audits and tax litigation. You can stay updated by subscribing to the newsletter via this link.