France increases the deduction of VAT on petrol expenses
France plans to increase the deduction of VAT on petrol expenses.
29 November, 2016
Historically, VAT deduction limits on petrol have been higher than deduction limits on diesel. The environmental reasoning for this difference is increasingly losing relevance and therefore governments start waiving tax benefits on the use of diesel.
According to the plans published by the French government, VAT deduction on petrol will increase gradually until reaching the same limits a VAT deduction of diesel expenses.
- 10% deduction allowed in 2017
- 20% deduction allowed in 2018
- 40% deduction allowed in 2019
- 60% deduction allowed in 2020
- 80% deduction allowed in 2021
Please contact us if you need more information about VAT deduction limits in all European countries.