Proposed changes to VAT in France

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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%.

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