Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 11/13/2012

France - Proposed VAT rate changes for 2014 

November 13:  The French Prime Minister announced a government proposal to amend the value added tax (VAT) rates in France beginning 1 January 2014.  Under the proposal, the VAT rates beginning in 2014 would be as follows:

  • The standard VAT rate would increase from 19.6% to 20%.
  • The intermediate VAT rate would increase from 7% to 10%.
  • The reduced VAT rate would decrease from 5.5% to 5%.

Since 1 January 2012, the 5.5% reduced VAT rate has applied only for a limited list of goods and services—including water and soft drinks, foodstuffs, special equipment and services for disabled persons, equipment for medical use, and certain supplies of electricity, heat-producing energy, and natural gas.


It is expected that the proposed changes to the French VAT rates would generate revenue of approximately €6 billion.


Read a November 2012 report [PDF 648 KB] prepared by STC Partners* in France: Modification of the French VAT rates as from January 1st 2014


*STC Partners is a French law sublicensee of KPMG International in tax.




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