TLDR: The waiver of the VAT withholding scheme for authors mandatorily covers a period of five years, including the year in which it is declared. It expires at the end of the fourth year following the year of its notification to the business tax department.
Duration and covered period
The waiver applies for a mandatory period of five years, including the year in which it is declared. This duration is set by Article 285 bis of the Code général des impôts (CGI).
Term and expiry
The waiver remains in effect until 31 December of the fourth year following the year of its notification to the business tax department (date of sending with acknowledgment of receipt). For example, a waiver notified on 5 June of year N expires on 31 December of year N + 4.
Automatic renewal by tacit extension
The waiver is automatically renewable by tacit extension for a new five-year period, unless the author submits a request to return to the withholding scheme within the thirty days preceding the expiry of each period. This mechanism ensures administrative continuity without additional formalities.
Automatic extension in case of VAT credit refund
The waiver is automatically extended for a new five-year period if, during or at the end of the current period, the author has benefited from a VAT credit refund under Article 271 of the CGI. This extension applies automatically, without the need for additional notification.
Scope of the waiver
The waiver applies to all royalties received by the author, regardless of the publishers, collective management organisations or producers involved. It must be notified to all paying parties as well as to the business tax department.
Notification procedures
The waiver must be notified in writing, by registered letter with acknowledgment of receipt, to the competent business tax department. A copy of this notification, together with proof of sending, must be sent without delay to all publishers, collective management organisations and producers paying the royalties.