- Category: VAT
French VAT rates
France has the reputation of having high taxes on everything. But does that stand for VAT rates? In France, they are as follows:
|VAT rates in France|
|Rate||designation||Type of product|
|20%||Standard||All other taxable goods and services.|
|10%||Reduced||Food, passenger transport, waste collection, etc.|
|5.5%||Reduced||Food, Canteens, water supplies, etc.|
|2.1%||Reduced||Pharmaceutical products, newspapers, public television fees, etc.|
|0%||Zero||Intra-community and international transport (excluding road and inland waterways).|
For European standards, those are actually somewhat low. European directives did make efforts to have countries make their VAT rates more uniform, but out of all EU countries, only 4 have a standard rate lower than 20%. It’s often for them to go as high as 22% – 25%, even reaching 27% in Hungary.
Similar observations can be made for the reduced rate, where many countries only have one reduced rate that can go up to 15%. And a country like Denmark doesn’t even have a reduced rate at all.
As such, VAT rates in France are surprisingly low!