VAT rates in France

French VAT regulations

In France, value-added tax (VAT) is an important form of tax levied on the sale of goods and services. The French VAT regulations, set out in the Code Général des Impôts (CGI), include various rates ranging from a standard rate to reduced and special rates. These different rates are intended to account for 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. For very specific products and services, such as reimbursed medicines and printed media, a special low rate of 2.1% applies. Furthermore, certain sectors such as non-profit education and healthcare are exempt from VAT to promote 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.

  • Standard VAT rate (20%): 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. This rate determines the difference between the price excluding and including VAT, with businesses collecting and remitting the VAT to the state.


  • Reduced VAT rate of 10%: This intermediate rate applies to various products and services for which a reduced rate is justified. Examples include:
    • Transport of passengers
    • Catering and certain renovation works in residences
  • Reduced VAT rate of 5.5%: This rate promotes the consumption of essential products and sustainable renovations. It applies to:
    • Food products
    • Health and hygiene products (e.g., sanitary products)
    • Subscriptions for energy such as gas and electricity
  • Specially low VAT rate of 2.1%: This rate is limited to specific products and services such as:
    • Reimbursed medicines
    • Newspapers and magazines

Additionally, specific VAT rates apply to Corsica and overseas departments, as outlined in French tax law. If the above overview does not provide sufficient clarity for your situation, you can browse the official government site or contact us.  We are here to answer all your questions about French VAT.

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