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Rules for applying different VAT rates

the different VAT rates

Summary

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There are 4 VAT rates in mainland France:

  • The standard rate set at 20%: It applies to transactions involving goods or services that do not have special provisions
  • The intermediate rate of 10%: It applies in particular to operations relating to (non-exhaustive list):
    • Unprocessed agricultural products
    • To work aimed at transforming, improving and maintaining homes
    • Personal assistance services
    • Accommodation and transport services
    • Medicines not reimbursed by social security
  • The reduced rate of 5.5%: It applies to essential products and services such as (non-exhaustive list):
    • Water, non-alcoholic beverages, human food products
    • Facilities for disabled people
    • Energy improvement work on homes over two years old
    • Subscription to energy supplies (gas and electricity)
  • The special rate of 2.1%: It applies to certain press publications or certain shows as well as to medicines reimbursable by social security

The special rate of 2.1%: It applies to certain press publications or certain shows as well as to medicines reimbursable by social security

Tips:In the presence of a given price including tax, the following coefficients allow us to obtain the prices excluding tax:

  • coefficient of 0.833 for a transaction subject to the standard VAT rate of 20%,
  • coefficient of 0.909 for a transaction subject to the reduced VAT rate of 10%
  • coefficient of 0.947 for a transaction subject to the reduced VAT rate of 5.50%
  • coefficient of 0.979 for a transaction subject to the specific VAT rate of 2.1%

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