Hi,
I have a French sale & leaseback property and reclaimed the VAT on the property when it was first acquired.
If I now elect to sell the property, is the VAT repayable to the French tax authorities ?
Some people are telling me that it is not repayable, as long as the new owners continue to operate the property as a Residence de Tourisme in line with article 261D 4°b of the general French tax code.
However, others are telling me that the VAT is repayable if I sell (i.e. the full VAT is repayable, less 5% per year for each year that I have owned the property - so if I owned it for 10-years and then sold, I would only have to repay 50% of the original VAT amount).
Anyone know the answer and why ?
Thank you.