Proposed changes to VAT in France

17 December 2012

The Government has proposed that from 1 January 2014:

• The standard VAT rate should be increased from 19.6% to 20%
• The intermediate VAT rate, specifically applying to restoration and renovation work on housing, should be increased from its current rate of 7% to 10%
• The reduced VAT rate, which applies to basic necessities, in particular food, will be reduced from its current level of 5.5% to 5%.