France postpones transfer of VAT provisions to the Code des Impositions sur les Biens et Services until 1 January 2027
The French Government has officially confirmed the postponement of the transfer of VAT provisions to the Code des Impositions sur les Biens et Services (CIBS).
An ordinance dated 27 July 2026 provides that the entry into force of these provisions will now take place on 1 January 2027, rather than 1 September 2026 as initially planned. The postponement is intended to give taxpayers and practitioners additional time to adapt to the changes under more favorable conditions.
In addition, as part of the recodification process initiated by the ordinance of 17 December 2025, the provisions governing the right to deduct VAT were redistributed across several sections of the CIBS making these provisions difficult to understand.
In response to observations raised during the public consultation process, as well as feedback received from businesses and tax professionals, the ordinance of 27 July 2026 revises the organization of the VAT section of the CIBS. In particular, it consolidates the provisions relating to the right to deduct VAT into a dedicated subsection, thereby improving the readability and accessibility of the rules.
This additional implementation period should facilitate taxpayers’ transition to the new legislative framework while allowing for a more coherent presentation of the VAT deduction provisions within the CIBS.
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