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VAT - Value Added Tax in France

Understand how VAT consumption tax is calculated and paid in France, and which goods and services it applies to...

VAT (Taxe sur la valeur ajoutée - TVA) is a consumption tax paid on certain goods and services purchased in France and is included in the sale price of these goods and services.

There are four rates of VAT in France (2013):

  • 20 percent: This is the standard rate
  • 10 percent: This applies to restaurants, transport, renovation/improvement works and certain medical drugs
  • 5.5 percent: This applies to food, water and non alcoholic beverages, books, special equipment for the disabled and school canteens
  • 2.1 percent: Special rate - applies to medical drugs reimbursed by the French social security
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