How to Calculate France VAT (TVA)

France's Value Added Tax (VAT), known locally as "Taxe sur la Valeur Ajoutée" (TVA), is a consumption tax applied to goods and services. France has a standard VAT rate of 20%, along with reduced rates of 10%, 5.5%, and 2.1% (super-reduced), plus a zero rate for certain supplies. VAT was introduced in France in 1954 and is administered by the Ministry of Economic Affairs and Finance. France is a founding member of the European Union and its VAT system is harmonized with EU rules.

Adding VAT to a Price

When you need to add VAT (TVA) to a VAT-exclusive price, use these formulas:

Example for 20% standard rate: If the base price is €100 (excluding VAT):

VAT Amount = €100 × 0.20 = €20.00

Total Price = €100 + €20.00 = €120.00

Example for 5.5% reduced rate: If the base price is €100 (excluding VAT):

VAT Amount = €100 × 0.055 = €5.50

Total Price = €100 + €5.50 = €105.50

Removing VAT from a Price

When you need to calculate the VAT-exclusive price from a VAT-inclusive price, use these formulas:

Example for 20% standard rate: If the total price is €120 (including VAT):

Base Price = €120 ÷ 1.20 = €100.00

VAT Amount = €120 - €100 = €20.00

Understanding France's VAT System

What is TVA (VAT) in France?

Taxe sur la Valeur Ajoutée (TVA) is France's value-added tax system. It's a consumption tax collected at each stage of the supply chain with the final burden on consumers. France's VAT system is harmonized with EU VAT rules as a founding member of the European Union. Businesses can claim input tax credits for VAT paid on business purchases, preventing tax accumulation.

The Four French VAT Rates

Standard Rate (20%): Applies to most goods and services including electronics, clothing, motor vehicles, alcohol, tobacco, professional services, and most other items not covered by reduced rates.

Intermediate Rate (10%): Applies to essential goods and services including:

• Take-away food and prepared meals
• Overnight accommodation (hotels, guest houses)
• Certain fish and aquatic products for consumption
• Public passenger transport
• Medical products and pharmacy services
• Construction and renovation work
• Household repairs and maintenance services
• Farming and forestry supplies

Reduced Rate (5.5%): Applies to essential goods and services including:

• Basic foodstuffs (bread, milk, cheese, fruits, vegetables, meat, fish)
• Books (printed and e-books since 2024)
• Newspapers and magazines
• Cinema tickets and cultural event admission
• Gas and electricity (domestic use)
• Water supplies
• Admission to sports facilities and events
• Services for elderly and disabled persons
• Social housing services
• Solar panel installation (since October 2025)

Super-Reduced Rate (2.1%): Applies to specific items:

• Medications and pharmaceutical products (prescription medicines)
• Press publications (newspapers, magazines)
• Certain cultural performances

Zero Rate (0%)

Zero rate applies to exports and certain international supplies:

• Exports of goods outside the EU
• International air and sea transport
• Sea vessels for commercial use
• Intra-community supplies to other EU member states

VAT Registration Requirements

Businesses in France must register for VAT if:

• €85,000 annual turnover for goods - Standard threshold for goods businesses
• €37,500 annual turnover for services - Threshold for service businesses (residents)
• €10,000 for digital services - Lower threshold for OSS digital returns
• Non-residents - No threshold, must register immediately

Businesses below the threshold can voluntarily register for VAT.

VAT Filing and Compliance

VAT-registered businesses in France must file VAT returns:

• Monthly Returns: Required for most businesses (standard requirement)
• Annual Returns: For businesses with turnover below €4,000 per annum
• Quarterly Option: From 2027, quarterly returns will be an option
• Payment Deadline: By the 25th of the month following return period (or next working day)
• Electronic Filing: All returns filed via TéléTVA portal (mandatory)
• Penalties: Late submissions can incur significant fines and interest charges

VAT-Exempt and Special Supplies

Exempt Supplies (No VAT, No Input Credit)

Some supplies are exempt from VAT, meaning businesses cannot claim input tax credits:

• Healthcare Services: Medical and dental services by healthcare professionals
• Education: Educational services by approved educational institutions
• Financial Services: Banking, insurance, investment services (mostly)
• Property Transactions: Sale and lease of immovable property (mostly)
• Betting and Gambling: Lottery and gaming services
• Social Services: Social welfare and care services
• Postal Services: Universal postal services
• Broadcasting: Certain public broadcasting services

Items Subject to 20% Standard Rate

The following are subject to standard 20% VAT:

• Electronics and appliances
• Clothing and footwear (except children's)
• Motor vehicles and parts
• Alcohol and tobacco
• Professional services
• Most entertainment services
• Furniture and household goods
• Gasoline and fuel

Items Subject to Reduced Rates (2.1%, 5.5%, 10%)

The following are subject to reduced VAT rates:

• 2.1% Rate: Medications, newspapers, theatre, certain cultural performances
• 5.5% Rate: Food, books, cinema, gas/electricity, water, sports, elderly services, solar panels
• 10% Rate: Take-away food, hotels, transport, construction, household repairs

France VAT Quick Reference

Frequently Asked Questions (FAQ)