• Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 1/29/2014

France - VAT rates for 2014 

January 29:  The rates of value added tax (VAT) in France, effective 1 January 2014, are as follows:
  • The standard 19.6% VAT rate is increased to 20%.
  • The intermediary 7% VAT rate (applicable to the food service industry, work performed on residential properties, domestic passenger transport, hotel industry, drugs authorized for marketing but not covered by social security, etc.) has been increased to 10%.
  • The 8% rate applicable in Corsica (construction work, etc.) has been increased to 10%.

While initially, there was legislative action that would have lowered the “reduced VAT rate” of 5.5% to 5%, that change was not enacted. Consequently, the “reduced VAT rate” of 5.5% is still effective.

Read a January 2014 report [PDF 1.3 MB] prepared by Fidal Direction Internationale* in Paris: Implementation of New VAT Rates in France as from 1 January 2014

*Fidal is an independent legal entity that is separate from KPMG International and its member firms.

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