VAT in France: Complete Guide to Taxe sur la Valeur Ajoutee (TVA)
The standard VAT Rate is 20%. Now you can calculate the value-added tax with our Vat Calculator France .VAT RATE
VAT Calculator France
France is one of the longest-running value-added Tax (VAT) methods around the globe. It is known locally in France as taxe sur la Valeur Ajoutee (TVA), this consumption tax is applied to the majority of products and services that are sold within the country. In 1954, France became the first nation to introduce VAT which set the standard for most all of Europe.
At present, France applies four different VAT rates that are standard reduced, intermediate, Super-reduced (zero or close to zero).
Current VAT Rates in France (2024)
| Rate Type | VAT % | Applies To |
|---|---|---|
| Standard Rate | 20% | Most of the goods and services |
| Intermediate Rate | 10% | Restaurants, renovations, travel meals |
| Reduced Rate | 5.5% | Food, books, electricity, museums |
| Super Reduced Rate | 2.1% | Public television |
VAT rates were increased. The Standard TVA rate was raised from 19.6 percent to 20 percent in January 2014..
How to Calculate VAT in France
VAT may be added to or removed from the price by using specific formulas.
Include Tax (Calculate Gross Price minus Net)
Formula: VAT Amount = (Original Cost x VAT%) / 100 Gross Price = Original Cost + VAT Amount
Eliminate VAT (Find the Net Price of Gross)
Formula: VAT Amount = Gross Price – (Gross Price x (100 / (100 + VAT %))) Net Price = Gross Price – VAT Amount
Example: Add VAT at 20% to EUR30,000
- VAT = (30,000 x 20) / 100 = EUR6,000
- Total Price = EUR30,000 + EUR6,000 = EUR36,000
Example Removal of VAT from EUR30,000 (Includes 20 percent VAT)
- VAT = 30,000 – (30,000 x (100 / 120)) = EUR5,000
- Net Price = EUR30,000 – EUR5,000 = EUR25,000
What Products and Services Have Different VAT Rates?
20% Standard Rate
It is applicable to all tax-deductible transactions made in France.
10% Intermediate Rate
It is used to:
- Transport for the public (excluding international)
- Restaurant meals
- Hotel accommodation
- Home renovations and repairs
- Wood to fuel
- Cable TV
- Amusement parks and cultural events
5.5% Reduced Rate
It can be applied to:
- Most food (non-luxury)
- Books (including ebooks)
- Electricity and gas
- Admission to zoos, museums, and cinemas
- Canteens for school
- Housing for the homeless
2.1% Super-Reduced Rate
Reserved to be used for:
- Periodicals and newspaper
- Prescription medicines
- Licenses for public television
- Certain livestock
VAT-Exempt and Zero-Rated Goods in France
While the majority of services and goods are taxed, a few are exempt or non-rated:
- Healthcare services and operations
- Education (schools, universities)
- Services for insurance and financial services
- Investment gold
- Betting and gambling
- Postal services (public)
- Baby care and nursery schools
- International and intra-EU transportation (excluding waterways that are inland)
Historical Timeline of VAT in France
| Year | VAT Rate (Standard) |
|---|---|
| 2010 | 19.6% |
| 2012 | 19.6% |
| 2014 | 20% (current) |
| 2016-2024 | 20% (no change) |
The VAT system in France was created by Maurice the founder of the tax system, Maurice who implemented it the system on April 10 1954 which made France the first nation worldwide to implement this system of VAT.
France VAT Calculator – How to Use It
Utilizing the France TVA calculator helps simplify tax calculations. Here’s how:
- Select France (or permit the software to automatically detect the country)
- Indicate the amount (net or gross)
- Select “Add Tax” or “Remove Tax”
- Select “Calculate” – and the tool will instantly display VAT and net/gross prices instantly.
Make use of the Tax Calculator France to test this in real-time.
How to Claim VAT Refund in France (for Tourists)
Tourists coming from other countries outside of the EU are entitled to an VAT reimbursement when they purchase eligible items during their travels.
Requirements:
- Spend at the minimum EUR175 in the course of a only one-day period in one shop
- Present the passport at the time of purchase
- Ask for a “bordereau de detaxe” (VAT refund form)
- The form should be stamped at the customs office at the time you leave the EU
- Fill out the form to request the 12percent refund (on an average)
Many stores do not provide VAT refunds. Check for signs that say “Tax-Free Shopping”.
Frequently Asked Questions (FAQs)
Q: What is VAT within France?
A: VAT in France is called Taxe sur la Valeur Ajoutee (TVA).
Q: Does VAT apply to food items in France?
A: The majority of food items are taxed according to a lower rate of 5.5 percent however, luxury foods such as caviar or chocolate could have to be taxed by 20 20%.
Q: What does the tax refund available for visitors to France?
A: Up to 12 percent of the purchase price as long as the minimum amount spent and appropriate documents are completed.
Q: How can I get rid of the tax for France?
A: Taxes are mandatory however, certain industries are exempt including health care, education and financial services.
Summary
France’s VAT system is one of the most organized in Europe it has distinct differentiations in rates that are based on the type of goods or services. No matter if you’re a company owner, a tourist, or local, understanding the way TVA operates will help you make better decision-making decisions in the financial realm and save cash.
