Reference for a preliminary ruling – C3S tax in France

The authority competent with regards to the C3S rectified the tax base of the contribution filed by the company « Lubrizol France » in 2008. In order to challenge this tax reassessment, the company argued that intracommunity transfers of stocks should not be considered as turnover. The Cour de Cassation rejected the company’s claim based on the principle laid down in the « Soitec » decision (Cour de Cassation, 7 November 2013, n°12-20.480), underlying the fact that the determination of the C3S base relies on the information included in the VAT returns which mention the said transfers on line 06.

The company has raised a new argument before the Cour de cassation, referred to the CJEU by preliminary ruling: does the application of the C3S to these intracommunity transfers of stocks between EU Member states constitute an obstacle to free movement of goods, through the establishment of a tax with an effect equivalent to customs duties but only for the flow of goods between France and other Member States, which is prohibited by articles 28 and 30 of the Treaty on the Functioning of the EU?

Michel Guichard

Michel Guichard, Partner, leads the Indirect Tax activity. With more than 30 years’ experience in International and French Tax law, he advises his clients on indirect tax matters. Michel is […]

Odile Courjon

Odile Courjon, Partner, has developed a strong expertise in indirect tax issues (VAT, wage taxes, excise taxes, export control and customs) in France and overseas. She advises her clients in […]

Bertrand Jeannin

Bertrand Jeannin, Partner, supplies strategic and technical advice to French and foreign multinational groups in all aspects of their VAT and customs policies. Major focuses of Bertrand’s input involve the […]

William Stemmer

William Stemmer, Partner, has more than 15 years’ experience in Indirect Tax matters. William particularly specializes in the real estate and financial sectors. William is a lecturer at the University […]

Anne Gerometta

Anne, Director, has been advising companies on indirect tax issues for more than 15 years. Anne has developed a specific expertise on the manufacturing sector (VAT, customs and Export Control) […]