France Confirms That 5% Fine For Failure To Reverse Charge VAT Is Constitutional

France Confirms That 5% Fine For Failure To Reverse Charge VAT Is Constitutional

The French authorities have confirmed  that the 5% fine for failure to reverse charge VAT is constitutional, as the French Constitutional Council ruled effective from 22 September 2022  Consequently, not reporting reverse charge transaction correctly in the VAT return when the taxpayer is allowed to deduct input VAT is a vital failure subject to a 5% penalty.