Consumption/VAT/Sales Tax in France
- 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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