VAT rates in France
In France, Value Added Tax (VAT) is an important form of tax levied on the sale of goods and services. The French VAT regulations, laid out in the Code Général des Impôts (CGI), include various rates that range from a standard rate to reduced and special rates. These differing rates are intended to take into account the economic or social impact of certain products and services, such as food, energy, etc.
The main VAT rates include 20% / 10% / 5.5% and 2.1%. The standard rate of 20% applies to most goods and services. Additionally, there are reduced rates of 10% and 5.5% for various essential and specific goods and services, such as transportation, hospitality, and renovation, which are considered less burdensome for consumers. A particularly low rate of 2.1% applies to very specific products and services, such as reimbursed medicines and printed media. Furthermore, certain sectors, such as non-profit education and healthcare, are exempt from VAT to promote their accessibility.
OVERVIEW OF VAT RATES IN FRANCE
Below is an overview of the different VAT rates and the categories of goods and services to which these rates apply in France.
VAT RATE |
DESCRIPTION |
EXAMPLE |
|
20%
|
Normal VAT rate: This is the standard rate for most goods and services. It applies to products and services that do not fall under a special or reduced rate. | |
|
10%
|
Reduced VAT rate: This intermediate rate applies to various products and services for which a reduced rate is justified. |
|
|
5.5%
|
Reduced VAT rate: This rate encourages the consumption of essential products and sustainable renovations. |
|
|
2.1%
|
Particularly low VAT rate: This rate is limited to specific products and services |
|
In addition, specific VAT rates apply to Corsica and the overseas departments, as outlined in French tax legislation. If the above overview does not provide sufficient clarity for your situation, you can browse the government’s website or contact us. We are ready to answer all your questions about French VAT.