TLDR: The VAT regime applicable to retrocessions under the RSA depends on the destination of the products: family consumption or the needs of the agricultural business. Façon operations follow the general VAT regime, except in specific cases.
Distinction based on the destination of the products
The VAT regime for retrocessions or transfers varies depending on whether they are intended for the family consumption of farmers or for the needs of their agricultural business. This distinction is fundamental for determining VAT applicability.
Case of retrocessions for family consumption
The value of agricultural products delivered to cooperatives or private companies for retrocessions or transfers intended for the family consumption of farmers subject to the RSA is taken into account for the VAT base. This also applies to products contributed for the production of animal feed, outside the legal framework of a façon market.
Façon operations and the general regime
Façon operations — defined as the delivery to the customer of a movable asset manufactured or assembled using materials provided by the customer — are considered service provisions (Article 256 of the CGI). They fall under the general VAT regime, unless they are part of a specific framework, such as animal feed processing.
Exclusion from the RSA for retrocessions outside the façon market
Retrocessions are not subject to the RSA if they are carried out outside the legal framework of a façon market. This exception applies only in this specific context.
Tax base and value of products
For retrocessions, the VAT tax base is the net price paid to the farmer, which must be used to assess the threshold figure determining the mandatory subject to the RSA.
Summary of determining criteria
- Destination: family consumption or agricultural business.
- Legal framework: presence or absence of a façon market.
- Type of operation: retrocessions, transfers, or service provisions.