A French senator feared that the VAT margin scheme for property would disappear when VAT rules move into the new Code of taxes on goods and services (CIBS). The answer published in the Senate Official Journal on 1 October 2026 is clear: the scheme is kept, the current tax doctrine remains binding on the administration, and transactions started before the doctrine change announced for 2027 are protected, including urban development concessions.
No. The margin scheme of article 268 of the French Tax Code (CGI) is carried over into the Code of taxes on goods and services, in wording that takes account of the Icade Promotion judgment of the Court of Justice of the European Union (case C-299/20). The current administrative doctrine (BOI-TVA-IMM-10-20-10) remains binding on the tax authorities, recodification included.
The Government plans to bring that doctrine into line with EU law by the first half of 2027. Even afterwards, a reseller may still rely on the current doctrine if the purchase, or the preliminary sale agreement, predates the publication of the new guidance.
The same applies to resales made under an urban development concession agreement (article L. 300-5 of the French Town Planning Code) signed before the doctrine change.
Written question no. 08332 by Senator Jean-Claude Tissot (Senate OJ, 9 April 2026, p. 1680) and answer of the Ministry of Public Action and Accounts (Senate OJ, 1 October 2026, p. 4768): full text on senat.fr (in French); BOI-RES-TVA-000253 (BOFiP). Checked on 2 October 2026.
The question, published on 9 April 2026, reflected a concern widely shared by developers: with Ordinance no. 2025-1247 of 17 December 2025, which recodifies VAT, property sales after refurbishment would no longer be taxed on the margin alone but on the full price. For a local public company (SPL), whose sales are often its only revenue, the price net of VAT would fall mechanically, with no way of passing the increase on in the price including VAT. The senator asked for a transitional regime for existing concessions.
The answer first recalls the framework. VAT on a supply of property is in principle charged on the full price (articles 266 and 267 CGI). Taxing the margin only is a derogation allowed by article 392 of Directive 2006/112/EC and transposed in article 268 CGI. It is not abolished: it is carried over into the CIBS, in wording that reflects the Court of Justice's reading in Icade Promotion.
It then confirms the position taken in 2021 and 2022 in the answers to Romain Grau, MP (nos. 35554 and 42486): as long as doctrine BOI-TVA-IMM-10-20-10 is not amended, it protects resellers acting in good faith under article L. 80 A of the French Tax Procedure Code (LPF), even where it departs from EU case law (Conseil d'État, opinion of 8 March 2013, Monzani, no. 353782). Recodification changes nothing: a ruling of 18 February 2026 (BOI-RES-TVA-000253) keeps all existing doctrine binding, ministerial answers included.
Finally, it sets a horizon and a protection. The doctrine will be brought into line with EU law by the first half of 2027. Later resales will remain under the current doctrine if the property was bought, or put under a preliminary sale agreement, before the new guidance is published. The Government expressly extends this protection to resales made under an urban development concession agreement (article L. 300-5 of the Town Planning Code) signed before the doctrine change.
Two corrections on dates and numbering. The answer refers to VAT rules moving into the CIBS on 1 September 2026, the date originally set by the ordinance of 17 December 2025. It was postponed to 1 January 2027 by Ordinance no. 2026-671 of 27 July 2026; until 31 December 2026, article 268 CGI remains the applicable text. The answer also cites articles L. 221-18 to L. 221-20 of the CIBS, in the December 2025 numbering; since the ordinance of 27 July 2026, they are articles L. 231-18 to L. 231-20 (see our CGI to CIBS correspondence table).
The answer secures the past and signals the future. It calls for four steps before the new doctrine is published.
Protection depends on a date: that of the purchase, or of the preliminary sale agreement, before the new guidance is published. For each property in stock, the dated deed or agreement is the document that will allow a resale under the current doctrine.
For property bought after the new doctrine, the taxable base will follow the reading derived from Icade Promotion, which is narrower than the current doctrine. A purchase price agreed today should be tested with VAT on the margin and with VAT on the full price.
For an urban development concession, what matters is the date of the concession agreement, not that of each purchase. A concession signed before the doctrine change may carry out its resales under the current regime.
References to the CGI remain valid after 1 January 2027 under the recodification's transitional rules; for new deeds, it is better to cite the CIBS articles. Above all, the deed should state the regime applied and the doctrine relied on, so that the protection of article L. 80 A LPF can be invoked in an audit.
The firm advises property dealers, developers and planning authorities on the VAT treatment of their resales: identifying the property protected by the current doctrine, modelling prices under both taxable bases, drafting clauses with the notary.
In tax audits, we defend operators whose margin scheme is challenged, relying on the administrative doctrine and ministerial answers where they protect the transaction.
No. The scheme of article 268 CGI is carried over into the CIBS, which takes effect on 1 January 2027. Its wording reflects the Icade Promotion judgment, but the current doctrine remains binding until it is amended (ministerial answer of 1 October 2026).
The Government plans to align it with EU law by the first half of 2027. No precise date has been set: the publication of the new guidance in the BOFiP will mark the change.
Yes, according to the answer: the reseller may rely on the current doctrine if the purchase, or the preliminary sale agreement, predates the publication of the new guidance, even if the resale takes place afterwards.
Yes. Local public companies (SPL) enjoy the same protection as any reseller. The Government adds that resales made under an urban development concession agreement (article L. 300-5 of the Town Planning Code) signed before the doctrine change will remain under the current doctrine.
No. Ruling BOI-RES-TVA-000253 of 18 February 2026 keeps all administrative guidance and positions binding, answers to written questions included. References to the CGI are read as references to the CIBS articles that replace them.
The scheme applicable when the purchase invoice is missing.
Voir la page CIBSTimetable, CGI to CIBS correspondence and points of attention.
Voir la page Property dealersCommitment to resell, commitment to build, substitution.
Voir la page
© BENSAID Avocats — The information on this site does not constitute legal advice and cannot replace a personalised tax analysis. Law as at 2 October 2026. The ministerial answer discussed is published in the Senate Official Journal of 1 October 2026, p. 4768.
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