Rental car website in France VAT | KPMG | GLOBAL

France: Rental car website subject to “travel agent” VAT rules

VAT rules for travel agents in France

A court in France determined that a company operating a website that allows customers to compare the rates of various car rental companies, to reserve vehicles, and to receive information and advice about car rentals was providing “travel agent” services and as such was subject to the special value added tax (VAT) regime under the “margin scheme.”


Related content

The company had requested a refund of VAT charged on the expenses incurred with respect to the rental car companies. However, the Conseil d'Etat found that the VAT changes could not be refunded because the activities performed by the company were within the scope of the special margin scheme that applies to travel agents (i.e., VAT is owed only on the margin realized, and no input VAT is deductible).

The case identifying information is: Holiday Autos UK, no. 371403 (7 December 2015)


Read a February 2016 report [PDF 45 KB] prepared by Fidal* 


* Fidal is a French law firm that is independent from KPMG and its member firms.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal