What is the VAT in France?
In France VAT is called TVA meaning ‘taxe sur la valeur ajoutée‘ in French. The VAT is due on goods and services when they are sold or when the service is completed.
What are the different rates of VAT?
France’s standard and highest VAT rate is 20% (twenty per cent), which also applies to luxury items. Sales of particular types of products, medicines and transports are subject to the lower 10% rate. There’s a lower 5.5% rate for various products (water, books) and selected medicines.
France has opted for the reduced and super-reduced VAT rates on several items allowed by the VAT Directive. The French super-reduced rate is the lowest in the European Union. The super-reduced rate of 2.1% applies to some pharmaceutical products, newspapers, TV licenses and admission to selected cultural events.
What is the TVA on DIY products in France
DIY enthusiasts should note that the VAT rate for all services and materials will be the standard rate of 20%. Only work conducted by professionals can benefit from a reduced rate of tax. French builders and tradesmen have professional accounts with local hardware stores, building materials, and hire specialists.
Are there TVA exemptions or incentives?
Finally, there’s a lower rate of 5.5% for work to improve energy quality and the work carried out to improve the energy quality. This involves the supply and installation of energy-saving materials and equipment.
Do you tax research
The VAT rules are complicated. However, there are lower rates for some work and appliances, including kitchen, efficient boiler systems, insulation materials and more. Look at the government’s guidance page on the various VAT rates (taux de TVA).
