Consumption/VAT/Sales Tax in France

Overview by
Nature of the Tax
Value Added Tax (VAT)
Standard Rate
Reduced Tax Rate
Reduced rate of 5.5% for food, agricultural products, water, books and magazines, hotel rooms and medicines.
Reduced rate of 2.1% for certain products reimbursed by the Social Security.
To find out about the rates valid in regions outside metropolitan France, click here (in French).
Exclusion From Taxation
Financial and insurance services, stocks of medicines, education and training are exempt from VAT. Export outside the EU are also exempt of VAT.
Method of Calculation, Declaration and Settlement
The rate of VAT is applied to the sales price.
Settling VAT is done through declarations which vary according to the tax regime ( normal real regime or simplified real regime).
Other Consumption Taxes
Domestic consumption tax on petroleum products (TIPP)
Domestic consumption tax on natural gas (TICGN)
Domestic consumption tax on coal and lignite
Domestic tax on tobacco (snuff and for smoking), cigars and cigarettes.
Domestic consumption tax on beer

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Experts Views (2)
  • 2013 Tax Data

    JPA International

    A synthetic ready to print leaflet about the main taxation rules in force in France in 2013

    JPA on 19 Jun 2013 related to Consumption/VAT/Sales Tax in France

  • EU VAT Guide

    With 27 EU Member States, each with their own VAT legislation to consider, VAT can be a time consuming and confusing task for international business.

    Accordance on 24 Jan 2012 related to Consumption/VAT/Sales Tax in France

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  • JPA

    Audit, Accountacy, Tax, France

  • Accordance

    International VAT Compliance,