The European Commission has announced plans to end a transitional period that lasted 24 years. The current intra-Community VAT rules were introduced in 1992 as a provisional regime. However, these rules remained unchanged due to, among other reasons, different VAT rates in each Member State. The Commission has now published and ambitious plan to introduce a final EU VAT regime.
Value Added Tax in local language is ´Taxe sur la valeur adjoute´. The French VAT rates are as follows:
France has opted for the reduced and super-reduced VAT rates on a number of items allowed by the VAT Directive. The French super-reduced rate is the lowest in the EU (source: European Commission):
20%, 10% or 5.5% depending on the item.
5.5%, 10% and 20%*
Medical equipment for disabled persons
Children´s car seats
5.5% and 20% (standard rated only if violent or pornographic content)
Books on other physical means of support
5.5% and 20% (standard rated only if advertising or pornographic content)
Admission to cultural services (theater, etc)
5.5% and 20%
Admission to amusement parks
10% and 20%
Pay TV / cable
Writers / composers
Restaurant and catering services
Admission to sporting events
Medical and dental care
Shoes and leather goods
Clothing and household linen
* France also introduced a super-reduced rate of 2.1% on the following items: certain pharmaceutical products; certain newspapers and periodicals; TV licenses; and admission to certain cultural events.