Taxes in Europe Database v2
Articles 256 et seq. of the General Tax Code (Code général des impôts) and Council Directive 2006/112/EC of November 26th, 2006.
In 2015, social security will receive 7.29 % of total VAT revenue (up until 2012, social security received the amount of VAT revenue collected on specific goods - health goods, alcoholic beverages, tobacco...).
Guyane and Mayotte (oversee departments)
cf. article 294 of the General Tax Code.
The exemption for small and medium enterprises applies under the threshold of (cf. article 293 B of General Tax Code) :
Cf. articles 298 bis et seq of the General Tax Code.
These special schemes are defined at articles 266, 297 A and 298 sexdecies (et seq) of the General Tax Code.
The contribution to public broadcasting is submitted to VAT (cf. III of article 257 and article 281 nonies of the General Tax Code).
The taxation base of the services of travel agents is defined at article 266 of the General Tax Code.
The admission to sporting events is taxed since the 1st of january, 2015 (cf. J of article 278 0-bis of the General Tax Code).
The exonerations are described in articles 293 B, 261, 260 A and 262 of the General Tax Code.
The VAT is levied on persons who independently supply goods or provide services resulting from economic activity, irrespective of the legal status of such persons, their position with regard to any other taxes or the form or nature of their intervention: manufacturers, wholesalers, retailers, processors, craftspeople, builders, estate agents, surveyors, commercial agents, landlords of furnished accommodation, entertainment promoters and other service providers, architects, chartered accountants, etc.
Handling over works of construction are taxed under a reduced rate of VAT if the construction is more than two-years old.
The other items are regarded as supply of goods and hence taxed under VAT according to article 257 of General Tax Code (Code Général des Impôts).
Cf. article 257 of the General Tax Code
Cf. II of article 257 of the General Tax Code
VAT is collected in connection with the supply of goods (tax chargeable on supply of goods) or the provision of a service (tax chargeable on receipt of payment), transfer of ownership, importation, purchase or intra-Community acquisition (tax chargeable on the fifteenth day of the following month or on the date of the invoice, depending on the nature of the taxable transaction).
The VAT is levied on the prices or fees for goods and services, including all applicable charges and taxes other than VAT.
The following are the main exemptions:
(a) transactions effected under suspension of VAT prior to the release of such products onto the internal market
(b) chargeable event constituted by the release of products from refineries and depots onto the internal market
(c) taxable amount applied on a flat-rate basis at the time of release onto the market
With some exceptions, VAT paid on the purchase of goods or services for business use is deductible from VAT due in respect of sales.
Taxpayers can obtain a quarterly or yearly refund of any overpaid VAT.
The supply of books is taxed at 5.5%, but the supply of newspapers is taxed at 2.1%. The renovation and repair of private dwellings is at 5,5% only for energetic improvement of housing of two years old or more.
Supply of natural gas, electricity and district heating are taxed at 5,5% for the subscription part of the bill.
The renovation and repair of private dwellings is at 10% for housing of two years old or more.
Supply of goods and services of a kind normally intended for use in agricultural production are taxed at 10% for organic agricultural input.
The 10% reduced rate is also applicable to: food sold to be eaten immediately; entrance tickets to concerts occurring to places when it is not compulsory to eat during the show etc.
The supply of books is taxed at 5.5%, but the supply of newspaper and regular publications of general interest with a direct connection to current affairs is taxed at 2.1%.
The 2.10% reduced rate is also applicable to: the contribution to public broadcasting;
- No VAT in Guyane and Mayotte.
- The standard VAT rate in Martinique, Guadeloupe and Réunion is 8.5%. The reduced rate is 2.1%. The super reduced rate is 1.05% (for the press).
- For Corsica: rate of 13% on oil products; 10% on construction works, sales on farm machinery, sales on eaten in products, etc.; 2.1% (reduced rate); 0.9% on sales of live animals to non-sujected to VAT entities, and on the first performances or circus.
Reduced rate 5.50% : this reduced rate is notably for agricultural products, water and non alcoholic beverages, disabled appliances.
Reduced rate of 10 % since 2014/01/01 : this reduced rate concerns most public entertainment.
Reduced rate also applies to labour intensive sectors such as building (since 1999), domestic employees (1999), restaurants (since July 1st 2009).
Super reduced rate notably for medicinal products and newspapers.
Since January 2012, France had two reduced rates : 5.5% and 7%, and a super reduced rate : 2.10%. From January 2014, France has a 20% standard rate, a 10% reduced rate, a 5.5% reduced rate and a 2.1% super-reduced rate (thanks to the Third Amending Finance Law in 2012).
Monthly or half-yearly returns are filed, accompanied by payment of VAT due. Small and medium‑sized enterprises may choose to pay VAT under a simplified system involving the submission of a yearly form of the return along with provisional instalments and a special return with which the outstanding amount is settled at the end of the fiscal year.
Businesses whose turnover is below a fixed threshold are exempt from VAT.
Finally, farmers liable for VAT submit one return per calendar year.
The VAT has to be paid to the Public Treasury.
This is the sum of the General Budget VAT, the VAT received by Social Security organisms, the VAT for the EU, the VAT of the common flat-rate scheme for farmers and the VAT on the subsudies for local authorities.