VAT: amendments to the Code of Taxes and Turnover (Sovereign Order 9.160 of 18 March 2022)

Sovereign Order n° 9.160 of 18 March 2022 on value added tax (JDM no. 8583 of 25 March 2022) transcribes into the Monegasque Code of Taxes and Turnover (CTCA) the French tax measures stemming from Law no. 2021-1900 of 30 December 2021 - Finance Law for 2022 (LF 2022) (JORF no. 0304 of 31 December 2021).

SUMMARY

The main French tax measures transcribed in the CTCA are the following:

• Taxable transactions by option: relaxation of the conditions for exercising the VAT option on banking and financial services, which may be selective, from 1 January 2022 (Art. 16 CTCA);
• Supply of goods or services made in connection with a multiple-use voucher (MUV): clarification of the taxable amount for VAT purposes in the absence of information on the consideration paid in exchange for the voucher, effective from 1 July 2022 (Art. 35, 1a CTCA);
• Liability for VAT on supplies of goods on account: alignment of the regime of advance payments on goods with that of supplies of services, by bringing forward the date of liability for VAT to the moment of receipt of the advance payment, as from 1 January 2023 (Art. 40, 2 a) and b) CTCA);
  
• Agri-food sector: adjustment of the reduced VAT rates of 5.5% and 10%, as from 1 January 2022 (Art. 50-0 and 52 CTCA);
• Health sector: extension of the reduced VAT rate of 5.5% to appliances, materials and equipment for people with disabilities benefiting from the support provided for innovative products (Art. 52-0 CTCA), and adjustment of the scope of the specific rate of 2.1% concerning blood products (art. 59 CTCA), as from 1 January 2022; extension until 31 December 2022 of the reduced VAT rate of 5.5% to protective masks and other products intended to combat Covid-19 (art. 52-0 CTCA);
• Press sector: specific VAT rate of 2.1% for supplies and intermediation services relating to publications that meet the conditions of Articles A-42 and A-43 Annex to the CTCA, from 1 January 2022 (Art. 95 CTCA).

These various technical measures are intended to rationalise, modernise and bring the VAT rules into line with European Union law [Explanatory Memorandum to the 2022 Finance Bill (PLF 2022)].