At present, the Standard Rate of VAT in France is 20%. It previously used to be 19.6% but increased to 20% in January of 2014. It is important to realize that Value-Added-Tax (VAT) is called Taxe Sur la Valeur ajoutée (TVA) in France.
On the Whole, TVA has four types of Tax Rates: Principle, Reduced, Intermediate, and Zero-Rated. The intermediate rate also increased from 7% to 10% in January 2014.
Moreover, the intermediate rate applies to moderation and repairing, travel tickets, wood fuel, and restaurant meals. France also has two reduced rates of 2.1% and 5.5%. The reduced rate of 2.1% applies to some services and goods, for instance, media services and medical prescriptions. The quality of 5.5% is levied on some products and services, for example, cinema tickets, books, foods, museums, gas, and electricity.
In France, at the present time, 4 types of VAT Rates are applicable.
Standard Rate of VAT 20%:
It is levied on most of the products and services provided that they are taxable.
Reduced VAT Rate of 10%:
Is it charged on several products and services, for instance:
Some Food-related stuff
Certain beverages provided that they are non-alcoholic
Pharmaceutical Products
Domestic Transport for Passengers
International as well as intra-community roads with some exceptions
waterways transportation services that are inland
Cultural Services’ Admissions
Amusement Parks’ Admissions
Cable TV
Private Dwellings’ renovation and repairs
Private Households’ cleaning
Agricultural Supplies
Reduced VAT Rate of 5.5%:
It is applied to some products and services, for example:
Some food-related stuff
Some beverages provided that is non-alcoholic
Water supplies
School Canteens
Books
Social Housing
Some E-Books
Reduced VAT Rate of 2.1%:
It is charged on some goods and services, for instance:
Pharmaceutical Products
Periodicals as well as Newspapers
License Fees of Public Television
Livestock
France’s VAT History:
A French Economist invented Value-Added-Tax (VAT) in 1954. But the first person who effectively introduced VAT with effect was a French Tax Authority’s Joint Director called Maurice Lauré, and he did it on 10th April 1954. Brief History of France’s VAT history is as follow:
A summary of VAT Rates in France since its inception is below:
VAT Level?
Year
19.6%
2010
19.6%
2012
20%
2014
20%
2016
20%
2018
20%
2020
20%
2022
Goods and Services Exempted from VAT in France:
While the Standard rate of VAT in France is indeed very high but on the other hand, several products and services are either exempted from VAT or zero-rated, for instance:
With the exclusion of inland waterways and roads, International Transport and Intra-community transport
Yes, VAT is charged in France at the standard rate of 20%.
Q: Is there VAT on Food in France?
In France, there is a reduced VAT rate of 5.5% on foodstuff. However, some items such as Vegetable Fats, Caviar, and Chocolate items are subjected to a Standard 20% VAT Rate.
Q: What is VAT called in France?
In France, Value-Added-Tax (VAT) is called ax Sur la Valeur ajoutée, and its abbreviation is TVA.
Q: How do I claim VAT in France?
To reclaim tax or claim a refund on taxation, a person should have spent at least 175€ on the same day in any participating store. That person should also have that passport with them. After completing the purchase, a Detaxe Form should be asked for from a Sales Associate, and the person should fill it out before they leave France.
Q: How much is a VAT refund in France?
The refund rate of VAT in France is 12% of the amount in which it is purchased.
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