The French tax administration has introduced a single VAT subject (assujetti unique) regime effective from 1 January 2023, allowing VAT-taxable persons established in France that are financially, economically and organisationally linked to form a single VAT entity.
Under the regime, member entities designate one representative among themselves to handle all VAT obligations for the group, including filing returns, making payments and submitting refund claims. The representative must file the option to create the single VAT subject with their local tax office by 31 October 2022 for implementation from 1 January 2023.
A supplementary filing period for defining the scope of the single VAT subject is available from 9 to 20 January 2023. The tax administration has published a frequently asked questions document addressing common business queries about the procedures required for implementation.
The regime provides French businesses with a VAT grouping mechanism similar to those available in other EU member states, allowing linked entities to consolidate their VAT obligations and potentially simplify compliance procedures for corporate groups.
