VAT on the margin: be aware of the express option

An art dealership underwent a tax audit, during whichadministration a VAT assessment.

The company had, in fact, reported and paid VAT under the margin scheme without having expressly requested the application of that scheme from theadministration , as required by Article 297 B of the General Tax Code.

After losing its case before the Administrative Court of Appeals, the company sought to demonstrate that this requirement for an express election—even though the margin scheme had been correctly applied—was unconstitutional.

However, in its decision of June 11, the Conseil d'Etat ruled that simply reporting only the revenue corresponding to the margin on the VAT return does not constitute an application to benefit from the margin scheme.

He also believes that there is no difference in treatment between taxpayers who expressly requested to opt into the scheme and those who applied it without making an express request.

The Conseil d'Etat therefore Conseil d'Etat the constitutional argument. The company's reorganization is thus upheld.

EC, 9th Chamber, June 11, 2025, No. 499727, unpublished

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