France: VAT changes

1st August 2012

The French Parliament has adopted the Finance Amendment Law.  The VAT changes are:

  • the previously planned increase in the VAT rate from 19.6% to 21.2% is not to be implemented;
  • the reduced rate of 7% which applies to books (in both hard copy and electronic formats) and live performances will be reduced to 5.5% from 1st January 2013.

However, it should be noted that the European Commission is taking action against France about its rate for electronic books as their view is that they should not be subject to a reduced rate so this may change in the future.

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