The VAT administration has published a new administrative circular relating to the VAT treatment of Régies Communales Autonomes (hereinafter “RCA”).
The question arises as to whether the CAR is covered by the exemption provisions requiring a non-profit purpose, i.e. Articles 44, § 2, 3°, 4°, a), 6°, 7° or 9°, of the VAT code.
Indeed, if the RCA pursues a profit motive, the aforementioned provisions of article 44 of the VAT Code do not apply, the RCA applies VAT on its outgoing transactions and benefits from the right to deduct the VAT paid on entry.
Source Aurelie Soldai
