|France to Increase VAT Rates|
On 28 November 2012, the Council of Ministers officially presented an amendment that would increase the rates of VAT
The amendment is discussed under the Third Amending Financial Law for 2012. The amendment proposes to change the VAT rates as follows:
• The standard rate will increase from 19.6% to 20%.
• The reduced rate will decrease from 5.5% to 5%. This rate applies to transport, games and entertainment, and services related to water supplies, as well as books and the transfer of copyrights by authors and artists. The reduced rate also applies to domestic care services provided to individuals, to work on dwellings, and to restaurant services.
• The middle rate will be increased from the current 7% to 10%. This rate applies to certain supplies related to basic necessities (e.g., water, food and services to disabled persons).
These measures will be applicable as from 1 January 2014.
The opinions expressed do not constitute investment advice and specialist advice should be sought about your specific circumstances.
Published on our website on December 17, 2012