Press Release: VAT: European Commission asks France to change its legislation on building land

The Commission asked France to amend, within two months, its legislation granting exemption from VAT on the supply of building land effected for consideration by a taxable person, where the land is acquired by natural persons intending to build on it. This request took the form of a reasoned opinion (second stage of the infringement procedure provided for in Article 226 of the EC Treaty). If France does not amend its legislation and practice within the time limit laid down, the Commission may decide to refer the matter to the Court of Justice.