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French VAT rates and VAT compliance

French VAT rates

As an EU member state, France follows EU rules on value added tax (VAT) compliance. France is still free to set its own standard (upper) VAT rate, providing this is above 15%.

 

Suppliers of goods or services who are VAT registered in France must charge the appropriate VAT rate, and collect the tax for onward payment to the French tax authorities through a VAT return.  

France VAT rates

RateTypeWhich goods or services
20%StandardAll other taxable goods and services
10%ReducedSome foodstuffs; certain non-alcoholic beverages; some pharmaceutical products; domestic passenger transport; intra-community and international road (some exceptions) and inland waterways transport; admission to some cultural services ;admission to amusement parks (with cultural aspect); pay/cable TV; some renovation and repairs of private dwellings; some cleaning in private households; some agricultural supplies; hotel accommodation; restaurants (excluding alcoholic beverages); some domestic waste collection; certain domestic care services; firewood; take away food; bars, cafes and nightclubs (except supply of alcoholic beverages); cut flowers and plants for decorative use; writers and composers etc; some social housing; some works of art, collectors items and antiques
5.5%ReducedSome foodstuffs; some non-alcoholic beverages; school canteens; water supplies, medical equipment for disabled persons; books (excluding those with pornographic or violent content); some e-books; admission to certain cultural events; some social housing; some renovation and repair of private dwellings; admission to sports events; some domestic care services; cut flowers and plants for food production; sanitary protection for women
2.1%ReducedSome pharmaceutical products; some newspapers and periodicals; public television licence fees; admission to certain cultural events; some livestock intended for use as foodstuff
0%ZeroIntra-community and international transport (excluding road and inland waterways)

French VAT Compliance

Once businesses are registered for VAT in France, they must follow local rules. This includes:

 

  • Issuing invoices with the disclosure details outlined in the French VAT Act
  • Electronic invoices, when used, must include the proper signature, authenticity, and agreement by the recipient
  • Maintenance of accounts and records, which must be held for at least 10 years
  • Correct invoicing of customers for goods or services in accordance with the French time of supply VAT rules
  • Processing of credit notes and other corrections
  • Use of approved foreign currency rates

What is the tax point for French VAT?

The tax point (time of supply) rules in France determine when the VAT is due. For imports, it is the time of importation. For goods, it is considered as the point of transfer of title. Any VAT due should then be declared in the subsequent VAT return. The tax point for French services is when performed, or on an accruals basis as ‘enjoyed’.

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VAT on food products and alcohol

In France, the VAT rate on food products depends on the type of goods sold and how they’re packaged, and the context in which the goods are bought or served — specifically, the expected consumption period.  

 

Deferred consumption 
Includes foods that are stored in airtight containers, with expiry dates, such as those sold in supermarkets (instead of a catering business). These are food products that can or are expected to be consumed at a later date, and do not need to be consumed immediately. The VAT rate for these goods is 5.5%. 

 

Some products served in restaurants also have a VAT rate of 5.5% if they can be consumed later. These include bottled water, non-alcoholic canned drinks, and food that typically comes in packages such as crisps. 

 

Immediate consumption
Includes foods that are intended to be consumed immediately, such as foods served in restaurants, cafés, bakeries, bars, and fast food outlets. Also included are food products that are served at catered events. The VAT rate for these goods is 10%. 

 

The sale of alcohol in France is subject to a VAT rate of 20% (for drinks with an alcohol strength of 1.2% or higher), regardless of being served alone or with other food products with a lower rate. Alcohol can never benefit from lower rates that are applied to on-site dining (immediate consumption). 

VAT on luxury goods

In France, items considered as ‘luxury’ for tax purposes are expensive non-essentials such as jewellery and precious stones, high-end cars, high-end watches, boats, caviar, works of art, and tobacco and cocoa-based products. All luxury goods (those that are outside basic necessities) are charged at the normal VAT rate of 20%.

The goal of taxing luxury items in France, as in other EU countries, is to regulate consumption of high-end items, in addition to generating revenue for the French state. 

 

The sale of alcohol in France is subject to a VAT rate of 20% (for drinks with an alcohol strength of 1.2% or higher), regardless of being served alone or with other food products with a lower rate. Alcohol can never benefit from lower rates that are applied to on-site dining (immediate consumption). 

VAT rate on services

Most services in France are subject to the standard VAT rate of 20%. These services include childcare, haircuts and hair treatments, housework, and medical treatments. A small number of services, such as passenger transport and waste treatment, benefit from a reduced VAT rate of 5.5%. 

 

VAT-exempt transactions

There are a small number of VAT exemptions in France. Exports of goods from France and goods transacted as part of intra-community supplies are exempt from VAT. Also exempt from VAT are teaching activities, and a small number of banking, financial, and medical transactions. 

 

How much is VAT in France?

 

The standard VAT rate in France is 20%. There are also reduced VAT rates of 10% and 5.5%, and a super-reduced VAT rate of 2.1%. The French super-reduced rate is the lowest in the EU, and includes TV licences, certain pharmaceutical products, certain newspapers and periodicals, and admission to certain cultural events. 

 

Details on which items in France have which rate applied to them can be found in the table above.

E-invoicing in France

E-invoicing is mandatory in France for B2G transactions for suppliers of goods and services to the French public sector. These suppliers are required to submit electronic invoices in a specific format through the Chorus Pro platform (the French central platform for electronic invoicing). 

 

B2B e-invoicing mandates were originally scheduled for July 2024, but have since been postponed. This was due to concerns around the readiness and ability of smaller businesses to adapt to such significant compliance changes. The French government also wants to safeguard against risks associated with a centralised system and the likelihood of all e-invoicing effectively coming to a halt in the event of a cyberattack. 

 

B2B e-invoicing in France will be implemented in stages, with the first wave of businesses being mandated to issue e-invoices starting September 2026. From this date, large and medium-sized businesses will be obliged to issue e-invoices to their customers in a specified format, using a government-approved platform. From September 2027, the B2B mandate will extend to small businesses and microenterprises.

Need a fiscal representative in France?

Non-EU businesses selling in France may need to appoint a fiscal representative, alongside completing a VAT declaration and filing returns, to help them deal with the French tax authorities.

Fiscal representatives are responsible for the accurate VAT submissions of their non-EU clients.

Avalara offers a Fiscal Representative Service as part of its international VAT and GST Registration and Returns Service.

 

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Need help with your French VAT compliance?

Researching French VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

 

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