Car dealer with extremely favorable prices by the tax authorities

Tax authorities and the administration demanded about 178,000 euros in taxes and fines from the car dealer for the first two years of its operation. (©Illustration – AdobeStock – Wellnhofer Designs)

The Administrative Appeals Court of Nantes (Loire Atlantique) has just rejected a car dealer. Luce (Eure-et-Loir).

He contested the validity of the VAT “reminders” (VAT) was requested from him by the tax authorities 2013-2015 years.

178,000 euros demanded by the tax authorities

SARL Chartres Auto Prestige – known by the trade name Global’s Auto and until now judicial annulment – was indeed generally claimed €178,000 taxes, surcharges and penalties.

The amount specifically included a 40% penalty for” willful default to tax reporting obligations.

His manager H.XXX nevertheless believed that these punishments ” not justified“.

For its part, the specialized collection center of the Department of State Finance of Eure-et-Loire (DDFIP) noted to the judges that it had given a “discount” on the only interest the company had not paid for 2014. – 2015, i.e. 7618 euros.

The controversial years, 2013-2015, in fact the first two years of its existence of the company: the company resold the used cars it bought Belgium It allowed individuals to bid by submitting only the “margin” they took to VAT more competitive prices

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Many similar disputes in France

But tax authorities across France, faced with many similar disputes, had not analyzed legal texts like his.

Thus, at first instance, the Orléans administrative court (Loiret) largely agreed with the administration and simply overturned the €1,000 fine imposed on the car dealer.

“The company (…) buys its supplies mainly from Belgian commercial companies and buys vehicles from those companies and then sells them to individuals”, in turn confirms the decision of the Nantes administrative appeal court dated November 25, 2022. public.

The administration claims without any contradiction that the company (…) presented purchase invoices (…) with the words “Intra-Community delivery is VAT free” in Dutch. It follows from this statement that the vehicles were sold under the common law regime for Intra-Community delivery. As the original owners (…) deduct VAT, the margin tax scheme does not apply.

Judges of the Administrative Appeals Court of Nantes

The “circumstance” that the Belgian sellers did not invoice the Lousse merchant for VAT does not preclude such an interpretation of the tax laws, he points out.

The fault lies in the “certainties” of accounting and law

Tax penalties of 40% were also justified from this point of view. Insufficient VAT declaration” It was the “result” of the Eurelian enterprise: there was enough for 40,000 euros in 2014 and 79,000 euros in 2015.

“SARL Chartres Auto Prestige has an almost exclusive activity in Belgium of cars purchased from suppliers specializing in leasing and second-hand cars,” notes the Nantes administrative appeal court.

In other words, he therefore resells “vehicles not outside the scope of VAT”.

It was the responsibility of the manager (…) to keep information about the tax regime applicable to the sale of second-hand cars from another Member State of the European Union. The invoices of the Belgian suppliers contained (…) an open note (…), i.e. deliveries exempted from VAT in the country of dispatch (…).

Judges of the Administrative Appeals Court of Nantes

The administrative appeals court of Nantes concludes: “The fact that these errors belong to the accountant (…) has no effect on the nature of the punishments (…)”. “The alleged ambiguities in the administrative doctrine are not defined. »

LB (PressPepper for actuChartres)

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