VAT Rate in France

Q: How do I comply with VAT in France?

Complying with VAT in France means following the French VAT act. This includes preparing the correct invoices, keeping the necessary records of transactions for a period of 10 years and using legitimate foreign currency rates.

Q: What are my VAT responsibilities?

As a VAT-registered business in France: You have to charge VAT on all taxable goods and services you sell. You must file a VAT return every 3 months, even if you have no VAT to report. You can reclaim the VAT you paid for goods and services from other VAT-registered businesses. When reporting your VAT, keep in mind, you must pay VAT even if you didn’t charge it from the customer — the price that you charge has the VAT included.

Q: What is exempt from VAT?

There are a few goods and services in France that are exempt from VAT and are not taxable. They include: Education and training Insurance and financial services Fundraising events held by charities Medical care and social services

Q: The difference between ’Zero-Rate’ and ‘VAT exempt’ in France?

VAT-exempt means the goods and services are outside the VAT system — you don’t need to charge any VAT on them nor report them on your VAT return. Even though you don’t pay VAT on zero-rated supplies, they are still taxable and must be reported on your VAT return. You can also reclaim the input VAT that you paid to other businesses when producing your zero-rated goods.

Learn about the VAT rate in France, rules and requirements. And get some handy insight into how Wise can help, with mid-market rate currency exchange, for a better deal when paying for goods from overseas.

Find out the VAT rates Send money at the real exchange rate

How much is VAT in France?

The standard VAT rate in France is 20%. It applies to most goods and services. The two reduced VAT rates are 10% and 5.5%. The super-reduced rate is 2.1%. France also has some zero-rated goods, the sale of which must still be reported on your VAT return, even though no VAT is charged.

The first reduced VAT rate (10%) applies to goods and services like some restaurants, construction and household work, farming and forestry and passenger transport.

The second reduced VAT rate (5.5%) applies to food, gas, electricity, art, cinema and sporting event tickets, services for elderly.

The super-reduced VAT rate (2.1%) applies to some medicine, newspapers and magazines.

French zero-rated goods and services include intra-community and international transport.

What is a VAT rate?

VAT (value added tax) is a type of consumption tax. The French government applies it on the sale of goods and services.

VAT isn’t paid by businesses — instead, it’s charged to consumers in the price of goods, and collected by businesses, making it an indirect tax. Businesses are then responsible for reporting it to the government.

Wise is the cheaper, faster way to send money abroad.

If you need to make payments abroad to pay international invoices, suppliers or freelancers, you could be better off with Wise.

With Wise you get the real mid-market exchange rate every time, with no markups and no hidden fees. There’s just a low , transparent charge which can work out much cheaper than your regular bank, or alternatives like PayPal.

Payments are secure, fast, and arranged online for convenience. Try Wise today, to see how simple it is to access international payments for less.

Wise business accounts are not yet available for companies registered in India. However we hope to expand our service in future.

How to work out VAT in France.

Total price including VAT

To work out the total price at the standard rate of VAT (20%), multiply the original price by 1.2. For the first reduced VAT rate (10%), multiply the original price by 1.1. For the second reduced VAT rate (5.5%), multiply the original price by 1.055. For the super-reduced rate (2.1%), multiply the original price by 1.021.

Total price excluding VAT

You can calculate the total price excluding the standard VAT rate (20%) by dividing the original price by 1.2. For the first reduced VAT rate (10%), divide the original price by 1.1. For the second reduced VAT rate (5.5%), divide the original price by 1.055. For the super-reduced rate (2.1%), divide the original price by 1.021.

Country
India	USA	United Kingdom
UAE	Singapore	Australia
Europe	Canada	China
Malaysia

How does VAT work?

VAT is collected at each point in the production of goods — every time value is added and a sale is made. This is what gives VAT its name — value-added tax. It’s designed to be paid by the consumer at the end. Here’s an example:

A supplier sells a badminton racket to a shop for €120. They owe €20 VAT to the government.
The shop pays €120 but can claim the €20 back from the government, so the shop doesn’t pay the VAT.
The shop sells the racket to the customer for €220. The VAT is €44 which the customer, as the end-user, pays in full to the shop.
Together with the reclaimable €20 VAT, the shop will end up paying €24 to the government.

VAT Refund.

When you’ve visited France, you’ll be able to get a VAT refund on items bought if:

You live outside the EU and are going back home
You’re an EU resident and are leaving the EU for 12 months or more
You’ve spent a minimum of 175€ in any tax-free store the same day
You are over 16 years old

There are multiple ways of receiving the refund — either get paid immediately at a refund booth at the airport or send the approved form to a refund company.

How to get a VAT refund in 3 simple steps?

Application form

Get a Tax Refund Application Form (Detaxe) from the retailer. You might also be asked to show your passport to check that you’re eligible.

Customs check

At customs, present your passport, VAT form(s), VAT invoice(s) and the tax-free goods.

Refund approved

If all the criteria is met, customs will approve your form. You’ll get a signed form that allows you to receive the refund.

VAT Rate in France

How much is VAT in France?

What is a VAT rate?

Wise is the cheaper, faster way to send money abroad.

How to work out VAT in France.

Total price including VAT

Total price excluding VAT

What are the VAT rates in other countries?

How does VAT work?

VAT Refund.

How to get a VAT refund in 3 simple steps?

Application form

Customs check

Refund approved

FAQ about VAT rate.

How do I comply with VAT in France?

What are my VAT responsibilities?

What is exempt from VAT?

The difference between ’Zero-Rate’ and ‘VAT exempt’ in France?

Send money at the best rate wherever you are