2023 VAT Deduction in France : Time to Act Before the December 31, 2025 Deadline!
French Input VAT omitted from deduction on 2023 expenses can still be recovered in your October and November 2025 VAT returns, provided they are filed before the end of the year.
For expenses giving full right to deduction, VAT is generally declared without difficulty by companies. However, things become more complex when dealing with expenses that are partially or fully excluded from the right to deduct. Often assumed to be non-deductible, the VAT incurred on such expenses can actually be recovered — under certain conditions.
Exceptions to the general rule, often misunderstood or misconfigured in accounting systems, can lead to the loss of significant amounts of deductible VAT — and therefore valuable cash flow — for businesses.
Unclaimed VAT: An Opportunity Still Available in 2025
The most frequent omissions concern recoverable VAT on company vehicles. Since the publication of the French tax ruling on April 30, 2025 (see our article dated May 7, 2025), employee company cars may even generate additional tax savings for businesses, both for future and past fiscal years.
Reminder: When a company car is used privately by an employee in exchange for a consideration, the business may now recover VAT on the purchase or leasing costs of that vehicle.
As the December 31 deadline approaches, now is the perfect time to review the completeness of your VAT deductions and optimise your recovery!
The statute of limitations for VAT is two years in France, meaning that expenses incurred in 2023 remain deductible until December 31, 2025.
At BtoBnice, we support finance departments in transforming accounting and reporting obligations into real savings opportunities:
• Audit of your accounting records
• Identification of unclaimed input VAT
• Tax compliance assurance
• Correction of accounting system settings
Book a meeting with our expert to discuss your VAT recovery opportunities in France: contact@btobnice.com
