Published : 3 weeks ago, on 16/11/2024

By Gianluca Lo Nostro

(Reuters) – French telecoms operator Orange said on Friday it had appealed against a 312 million euro ($329.28 million) seizure by the National Financial Prosecutor’s Office in a dispute over VAT.

The French prosecutor’s office is looking into the varying tax rates that the telecoms operator charged for its services between 2017 and 2019.

Orange said in a statement it had appealed the seizure, which was ordered on October 7, and is fully cooperating to determine the scope of the investigation during this preliminary phase.

At the time, Orange and other providers applied different VAT rates depending on the service included in their packages.

Customers were charged a 5% rate for television services, while a 20% tax, the standard rate in France, was applied for telephone services.

Vivendi’s media company Canal+ and telecoms group SFR have also undergone similar investigations concerning VAT rates.

In October, French authorities demanded Canal+ pay 655 million euros, the French newspaper, L’Informé, reported.

Orange said the frozen amounts will be recorded in a specific account on Orange’s balance sheet and will appear as such in its financial statements as of Dec. 31, 2024.

“We’ll change the ratios that are communicated to the market concerning net debt, but our main financial guidance remains unchanged,” an Orange spokesperson told Reuters.

($1 = 0.9475 euros)

(Reporting by Gianluca Lo Nostro, Editing by Louise Heavens and Elaine Hardcastle)