VAT Rates in France
In France, the standard VAT rate is 20%, which applies to most goods and services. The reduced VAT rate of 10% is applied to certain goods and services, including necessities such as food, books, and medical products.
Moreover, the super-reduced VAT rate of 5.5% is applied to some food products, energy-saving products, and certain cultural activities. In addition to the standard, reduced, and super-reduced VAT rates, France has a special VAT rate of 2.1%.
French VAT Rates
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Standard VAT rate |
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| A standard VAT (Value-Added Tax) rate is each country’s most typical VAT rate applied to goods and services. It is applied to most goods and services, with some exceptions, such as essential items or other specific goods or services that may have a reduced rate and are presented below. | |
| Rate | Good or Services |
| 20% | This rate applies to most sales of goods and services and encompasses all products and services not subject to VAT rates. |
|
Reduced VAT rates |
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| There are goods and services that may qualify for a lower value-added tax (VAT) rate presented below: | |
| Rate | Good or Services |
| 10% | Intermediate Rate |
| Food items intended for animal consumption: Animal feed or livestock feed | |
| Firewood: Timber or fire logs | |
| Raw agricultural commodities: Unprocessed agricultural products, products of fishing, fish or poultry farming and live foals | |
| Certain agricultural inputs: Farm inputs or Agricultural supplies | |
| 5.5% |
Reduced rate |
| Food and non-alcoholic beverages | |
| Buying and leasing of books, encompassing both physical and electronic formats. | |
| Sales of prepared meals by producers to vendors for takeout purposes | |
| The act of specific non-profit organizations providing necessary supplies for residential units that meet certain criteria, such as social housing units designed for elderly or disabled individuals | |
| Some materials or services related to land and structures | |
| Food services offered in educational institution cafeterias | |
| Forms of entertainment, including circus performances, theatrical productions, and concerts. | |
| Fees paid on a regular basis for the delivery of heat energy generated from sustainable resources accounting for at least 50% of the total production | |
| Products designed for feminine hygiene purposes, such as menstrual pads or tampons | |
| Medical devices and equipment that are designated for individuals with specific disabilities or medical conditions. | |
| Water | |
| Supplies of art materials acquired directly from artists | |
| Housing and assistance services offered in hotels used for social purposes | |
| 2.1% | Special Rate |
| Entrance fees for the initial 140 presentations of recently developed production | |
| Specific pharmaceutical items
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| Transactions involving live animals intended for slaughter and processed meat products sold to individuals not subject to taxation | |
| Television license fees | |
| 0% | Zero rated products |
| Intra- community supplies | |
| Exports | |
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Exempt From VAT |
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| Gambling and Lotteries such as betting and gaming | |
| Finance and Insurance includes certain banking or financial transactions such as loans, deposits, and investments including insurance and reinsurance | |
| Fishing Operations | |
Healthcare:
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| Postal services provided by the national postal service provider. | |
| Certain real estate transactions, such as the sale or lease of residential properties. | |
| Supplies for charitable purposes or donations | |
| Educational and childcare supplies or services | |
| Companies with shared ownership or cooperative companies | |
| Mutual Aid between farmers or cooperative farming | |
| Goods and services provided by associations to their non-profit members who engage in public interest activities | |
Corsica, DOM, and Monaco have special VAT rates
| Rate Type | VAT Rate | Categories of Products or Services |
| Standard | 20% | Same as to mainland France |
| Reduced | 13% | Petroleum products |
| 10% | Certain real estate works | |
| Agricultural equipment | ||
| Certain supplies of furnished or furnished dwellings and sales for on-site consumption | ||
| Sales of low voltage electricity | ||
| 2.1% | Certain items supplied in Corsica and certain services are subject to the reduced rate applicable in mainland France | |
| 0.9% | The first performances of certain musicals, sales of live animals for slaughter, and delicatessen sales to non-taxpayers |
VAT in Overseas departments
In the overseas departments (excluding Guyana and Mayotte), the rates are:
- Standard rate: 8.5%
- Reduced rate: 2.10%
- Special rates: 1.75% and 1.05%
VAT in Monaco:
Transactions originating from or directed to the Principality of Monaco are considered equivalent to those from or to France.
Unless expressly authorized by law (e.g., exports), the exemption results in the loss of the right to deduct the tax that burdened the elements of the transaction’s price.
Transactions exempted under the domestic regime, primarily:
- Exemptions aimed at avoiding double taxation (transactions subject to registration fees, gambling taxes, and so on).
- Exemption from user deliveries of used products.
- Exemptions for the practice of medical and paramedical professions, education, and related operations.
- Exemptions for public utility organizations.
- Exemptions from services supplied to their members by certain groups.
- Exemptions for certain real estate rents.
- Bank activities are exempted.
- Intra-community commerce.
- Certain importation-related operations.
- Exports and businesses that have been assimilated into exports.
Last Updated: 27/10/2023
Disclaimer
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