impots.taxFRENCH TAX MONITOR

FRANCE VAT RATES 2026

REPORT ON THE MOST EFFICIENT FISCAL WEAPON EVER INVENTED

Data 2025

QUICK ANSWER

France applies four main VAT rates in 2026: 20% standard, 10% intermediate, 5.5% reduced and 2.1% special. Most goods and services fall under the standard 20% rate.

The Value Added Tax is France's most exported fiscal invention. Created in 1954 by Maurice Lauré, it is now used by over 170 countries. Its genius: it's invisible. You pay it with every purchase without ever seeing it. The perfect tax according to the State — the one you don't notice.

THE 4 VAT RATES

Standard rate — 20%

The majority of goods and services. Electronics, clothing, professional services, alcohol… everything that doesn't qualify for an exception.

20%

Intermediate rate — 10%

Restaurants, passenger transport, energy renovation work, non-reimbursed medication, camping, museums.

10%

Reduced rate — 5.5%

Food (except alcohol, confectionery, caviar), books, sanitary protection products, renewable heat, disability equipment, live performances.

5.5%

Super-reduced rate — 2.1%

Print and online press, medications reimbursed by Social Security, first performances of certain shows, some live butcher's animals.

2.1%

HISTORY

VAT was invented in France in 1954 by Maurice Lauré, a finance inspector. The initial rate was 16.85%. Today, the standard rate is 20%. The State decided 16.85% wasn't round enough — or profitable enough.

MECHANISM

VAT is collected at every stage of the production and distribution chain. Each business only remits VAT on its value added (collected VAT - deductible VAT). The final consumer bears the entire tax. It's a consumption tax, not a production tax.

FREQUENTLY ASKED QUESTIONS — VAT

What are the VAT rates in France?
As of April 24, 2026, metropolitan France applies four VAT rates: 20% standard (most goods and services), 10% intermediate (restaurants, transport, renovation work, non-reimbursed medicines), 5.5% reduced (food, books, sanitary protection products, disability equipment, renewable heat, live performances), and 2.1% special rate (press, reimbursable medicines, first performances of certain shows). Since August 1, 2025, gas and electricity subscriptions are no longer taxed at 5.5%; they fall under the standard 20% rate.
Who invented VAT?
Maurice Lauré, a French tax inspector, in 1954. The initial rate was 16.85%. Now used by over 170 countries, VAT is arguably France's most successful export — more widely adopted than wine, cheese, or existential philosophy.
Why is VAT considered the perfect tax?
It's invisible (built into prices), collected at every production stage, nearly impossible to evade, and the consumer pays 100% without ever seeing a bill from the government. The State gets paid before you even reach the checkout counter.
Which products have the reduced 5.5% rate?
The 5.5% reduced rate applies notably to basic food (excluding alcohol, confectionery, and caviar), books, feminine sanitary protection products, disability equipment, heat produced from renewable energy, and live performances. Since August 1, 2025, gas and electricity subscriptions are taxed at the standard 20% rate.

RELATED REPORTS

Fuel Taxes

The SP95-E10 breakdown, excise duty and VAT applied on top.

Behavioral Taxes

Tobacco, alcohol and sugar taxes with the actual tax share.

International Comparison

How France's total tax pressure compares with OECD countries.

Source : impots.gouv.fr, economie.gouv.fr

Last updated: 24 avril 2026