1. Second-hand Goods
– Used goods defined in section I-A §§ 10 and following of the BOI-TVA-SECT-90-10 are subject to the standard value-added tax (VAT) rate, the same as for new goods.
– Specific rules for certain cases are mentioned in §§ 10 and following.
I. Packaging
A. Returnable Packaging
– Returnable packaging is generally considered an asset for its owner.
– Recoverable packaging not easily identifiable can be treated as inventory.
– The classification depends on usage circumstances.
– Acquisition of returnable packaging allows deduction according to standard rules.
– When used to package sold goods, it’s part of the single operation, subject to VAT.
– Specific conditions must be met for consignments not included in VAT base.
B. Sold Lost Packaging
– Similar rules apply to packaging sold as lost.
– VAT deduction depends on whether the packaging is an accessory to the sold content.
– New packaging separated from content becomes used, subject to used goods rules.
II. Used Vehicles
– For internal operations, imports, exports, vehicles are used if they’ve been used and are reusable.
– For intra-community trade, vehicles are used if delivered more than 6 months after first use and over 6,000 km.
A. Rates
– VAT on used vehicles, cycles, and motorcycles is at the standard rate.
B. Special Cases
1. Demo Vehicles
– Demo vehicles resold are treated as used vehicles.
2. Promotional Trade-ins
– Vehicles traded as part of promotions are handled based on specific conditions.
III. Rags and Second-hand Clothing
– Processed rags for industry are subject to full VAT.
– Completely worn-out items for recycling are considered recovery materials.
– Second-hand clothing taxed based on their own conditions.
IV. Retreaded Tires
A. Named Retreadings
– Retreadings done for clients’ ownership are subject to VAT.
B. Standard Exchanges
– Exchanges involving payment of a sum are treated as double sales, following used goods rules.
V. Used Mineral Oils
– Used lubricating oils are treated as reusable second-hand products.
– VAT treatment depends on whether oils have been deducted during acquisition.
Source: gouv.fr
