In France, VAT is called TVA, which is an acronym in French for Value Added Tax. If you have had business dealings with a French company you must be up to date with French taxes.
At Ficotec we help, advise and manage this tax having the knowledge of the latest VAT rates in France valid in 2018. These include VAT on alcohol, catering, works and all other relevant goods and services.
In France, there are four main VAT rates. Therefore, depending on the goods and services you buy, the amount of VAT will be different. Currently the VAT rate ranges from 20% (standard rate) to 2.1% in the case of super-reduced VAT.
Normal VAT (20%)
This rate applies to most goods and services; it applies to all goods or services for which no other rate is expressly stated. The last normal VAT increase was in 2014 (from 19.6% to 20%).
VAT reduced by 10%.
It applies in particular to unprocessed agricultural products, firewood, home improvement works which do not benefit from the 5.5% tax, certain accommodation and camping services, fairs, games and attractions, entrance fees to museums, zoos, monuments, passenger transport, waste treatment and catering.
Reduced VAT of 5.5%.
This covers most foodstuffs, feminine hygiene protection products, equipment and services for the disabled, books on all media, gas and electricity subscriptions and the supply of heat from renewable energy sources, the provision of meals in school canteens, tickets for live performances and cinema, certain imports and deliveries of works of art, work to improve the energy quality of housing, social and emergency housing, and home ownership.
Special VAT of 2.1%.
It is reserved for medicines reimbursable by social security, sales of live animals intended for slaughter, television licence fees, certain shows and press publications registered with the Joint Committee on Publications and Press Agencies.
Who pays VAT?
All sales and services made in France are subject to VAT, except where a special exemption applies. A transaction is only subject to VAT in France if it is located in the national territory. Exports of goods and intra-Community supplies are exempt from VAT. Therefore, some specific activities, which nevertheless qualify for VAT, are exempted from this requirement:
- Intra-Community exports and supplies
- Sea fishing activities
- Non-profit social or philanthropic organizations
- Medical and paramedical activities
- Teaching activities
- Rental of empty buildings and furnished apartments
- Delivery of new industrial waste and recovery materials
- Other examples are self-employed entrepreneurs. The latter are subject to a micro-fiscal regime defined by a maximum annual limit of CA. It is therefore exempt from VAT.