How Much is VAT in France? TVA Rates, Rules and Worked Examples

What are the four VAT rates in France?

Mainland France has four TVA rates. Think of them as tiers: the 20% standard rate catches almost everything, and the three reduced rates apply only to the specific goods and services the law lists.

Special territories follow different rules: Corsica applies its own lower rates (including 13%, 10%, 2.1% and 0.9% on listed operations), the overseas departments of Guadeloupe, Martinique and Réunion use 8.5% as the standard rate, and Mayotte and French Guiana have no TVA at all. Everything in this guide refers to mainland France.

What does the 10% TVA rate cover?

The 10% intermediate rate is the one tourists meet most often — it sits on top of daily-life spending in France. The main items taxed at 10% are:

• Restaurant meals — food eaten on the premises, including café lunches and takeaway food.
• Passenger transport — train, bus, metro and taxi fares.
• Hotel stays — accommodation nights.
• Home repairs and renovation — qualifying renovation work on housing, charged at 10% instead of 20%.
• Museum entry — admission to museums and similar cultural venues.

A restaurant bill is a good example of why the tier system matters: your meal is taxed at 10%, but the glass of wine with it is taxed at the 20% standard rate. The rate follows the product, not the setting.

What does the 5.5% TVA rate cover?

The 5.5% reduced rate keeps TVA low on essentials and everyday necessities. The main items at 5.5% are:

• Most groceries — basic food products from a supermarket (alcohol, confectionery and caviar are excluded and taxed at 20%).
• Books — printed books and digital press publications.
• School canteens — school meals.
• Water — household water supply.
• Household energy — the consumption part of gas and electricity bills; note that since August 2025 the subscription (abonnement) part of energy bills moved to the 20% standard rate under the Finance Act.
• Sanitary products — tampons and sanitary pads.

The grocery-versus-restaurant boundary is the one that trips people up: the same sandwich bought cold in a supermarket is taxed at 5.5%, but served in a restaurant it is taxed at 10%. As with the UK's food rules, how and where the food is supplied decides the rate — not just what it is.

What is the 2.1% super-reduced TVA rate for?

The 2.1% rate is the lowest TVA rate in France — a super-reduced tier reserved for items the state considers most essential. It covers:

• Reimbursable prescription medicines — medicines covered by state (social security) reimbursement.
• Daily and weekly press — newspapers and periodicals published daily or weekly.
• Certain live performances — first performances of specific listed live shows.

Non-reimbursed medicines and monthly magazines do not qualify for 2.1% — they fall back to the 5.5% or 20% rates depending on the product. For shoppers this rate is mostly invisible: the price on the box or at the pharmacy till is already calculated at 2.1%.

How do I calculate VAT (TVA) on a price?

French prices use two terms: HT (hors taxes, excluding tax — the net price) and TTC (toutes taxes comprises, all taxes included — the price you pay). Converting between them is the same maths in both directions. Worked examples at the 20% standard rate:

The most common mistake is subtracting 20% from the TTC price to remove TVA: 20% off €120 is €96, not €100. Always divide by 1.20 (or by 6 for the TVA amount) instead. Our VAT Calculator does both directions instantly — enter your HT or TTC price and it handles all four French rates.

Is VAT included in French shop prices?

Yes — the price you see in a French shop or on a menu is the price you pay. Consumer prices in France are shown TTC (toutes taxes comprises), so the 20% (or 10%, 5.5%, 2.1%) is already baked in. When a receipt shows €120 TTC, €100 is the goods and €20 is the TVA — the "extracting TVA" example above.

Business-to-business quotes are the exception: trade suppliers usually show prices HT (hors taxes) because their business customers can reclaim the TVA. If you are a freelancer or small business quoting a French client, say explicitly whether your quote is HT or TTC — most disputes about TVA start with that ambiguity.

When do French businesses have to charge TVA?

Small businesses benefit from the franchise en base de TVA, which exempts them from charging and paying TVA as long as their annual turnover stays below the thresholds — €85,000 for sales of goods and €37,500 for services. These thresholds are in force since 1 January 2025 (a proposal to unify everything at €25,000 was made twice and rejected). A franchised business must write "TVA non applicable, art. 293 B du CGI" on its invoices.

Once a business exceeds the thresholds (or opts in voluntarily), it must charge TVA at the correct rate on its sales, file periodic TVA returns, and can reclaim the TVA it pays on business purchases. If you are approaching the threshold, the decision and the paperwork matter — but the rate you will charge is the straightforward part: 20% standard unless your goods fall into the reduced lists above.