The France VAT Calculator helps you quickly determine the VAT amount on a purchase or service. You can calculate VAT by adding it to a net amount or removing it from a total amount.
France VAT Calculator
Calculate Value Added Tax for France transactions with accurate rates
Standard Rate
Intermediate Rate
Reduced Rate
Special Rate
Total Amount
VAT Amount
Net Amount
VAT Rate
Removing VAT: Net = Amount ÷ (1 + VAT Rate)
The France VAT Calculator helps you quickly determine the VAT amount on a purchase or service. You can calculate VAT by adding it to a net amount or removing it from a total amount.
When adding VAT:
- VAT Amount = Net Amount × VAT Rate
- Total Amount = Net Amount + VAT Amount
When removing VAT:
- Net Amount = Total Amount ÷ (1 + VAT Rate)
- VAT Amount = Total Amount – Net Amount
France has four main VAT rates: Standard (20%), Intermediate (10%), Reduced (5,5%), and Special (2,1%). Most goods and services are taxed at the standard rate.
Adding VAT Example
Let’s say you want to calculate VAT on a €100 product with the standard VAT rate of 20%:
Net Amount = €100
VAT Rate = 20% or 0,20
Calculate the VAT amount:
VAT Amount = €100 × 0,20 = €20
Calculate the total amount:
Total Amount = €100 + €20 = €120
Removing VAT Example
Now, let’s say you have a total amount of €120 and want to calculate the net amount and VAT:
Total Amount = €120
VAT Rate = 20% or 0,20
Calculate the net amount:
Net Amount = €120 ÷ (1 + 0,20) = €120 ÷ 1,20 = €100
Calculate the VAT amount:
VAT Amount = €120 – €100 = €20
Reduced Rate Example
For restaurant services, the reduced VAT rate of 10% applies. Let’s calculate VAT on a €50 restaurant bill:
Net Amount = €50
VAT Rate = 10% or 0,10
Calculate the VAT amount:
VAT Amount = €50 × 0,10 = €5
Calculate the total amount:
Total Amount = €50 + €5 = €55
France VAT Rates Explained
France has four main VAT rates that apply to different types of goods and services:
Standard Rate: 20%
Intermediate Rate: 10%
Reduced Rate: 5,5%
Special Rate: 2,1%
What Each Rate Applies To
Standard Rate (20%): Most goods and services including:
- Electronics and technology products
- Clothing and footwear (excluding some categories)
- Jewelry and luxury items
- Most services not covered by reduced rates
- Alcoholic beverages and tobacco products
- Restaurant services for food and drink consumed on-premises
Intermediate Rate (10%): Specific goods and services including:
- Restaurant services for food and drink to take away
- Passenger transport services
- Hotel accommodation
- Certain renovation and repair works in housing
- Admission to cultural and entertainment events
- Some agricultural products
Reduced Rate (5,5%): Essential goods including:
- Most food products
- Books, newspapers, and periodicals
- Gas and electricity
- Water supply
- Equipment and services for disabled people
- Social housing
Special Rate (2,1%): Very specific cases including:
- Medicines reimbursable by social security
- Press publications
- Live performances (theater, circus, etc.)
- Some food products for animal consumption
VAT Exemptions in France
Some goods and services are exempt from VAT in France, meaning no VAT is charged on them. However, businesses that sell exempt goods cannot reclaim the VAT they pay on their purchases.
Common VAT exemptions include:
- Medical and healthcare services
- Educational services
- Financial and insurance services
- Postal services
- Lotteries and betting
- Rental of residential properties
- Some cultural services
- Insurance and reinsurance services
VAT Registration Thresholds
In France, businesses must register for VAT if their taxable turnover exceeds a certain threshold:
- Registration Threshold: €34,400 for service providers
- Registration Threshold: €85,800 for sellers of goods
- Deregistration Threshold: €33,200 for service providers
- Deregistration Threshold: €85,800 for sellers of goods
Once registered, businesses must charge VAT on their taxable supplies and submit VAT returns, usually monthly, quarterly, or annually depending on their turnover. They can also reclaim VAT on their business purchases.
France has special VAT regimes for small businesses, including the “Régime de la micro-entreprise” and “Régime réel simplifié” (Simplified Regime).
Understanding France VAT
What is VAT?
Value Added Tax (VAT) in France is known as “Taxe sur la Valeur Ajoutée” (TVA). It is a consumption tax levied on the value added to goods and services at each stage of production or distribution. In France, VAT is administered by the Direction Générale des Finances Publiques (DGFiP).
How VAT Works
VAT is collected by businesses on behalf of the French tax authority. Businesses charge VAT on their sales (output tax) and can reclaim VAT they pay on their purchases (input tax). The difference is paid to or reclaimed from the tax authority through periodic VAT returns.
VAT Rates History
The standard rate of VAT in France has changed over time. It was introduced at 17,6% in 1968, increased to 18,6% in 1982, then to 20,6% in 1995. It was reduced to 19,6% in 2000 and then increased to the current 20% in 2014. The reduced rates have also been adjusted periodically over the years.
VAT Invoices
Registered businesses must provide VAT invoices that include specific information: their VAT number (Numéro de TVA), invoice date, invoice number, customer details, description of goods or services, and the VAT rate applied. Electronic invoicing (facture électronique) is increasingly common and will become mandatory for B2B transactions by 2024.
VAT Returns
Registered businesses must submit VAT returns to the French tax authority. The frequency depends on the business size and turnover: monthly, quarterly, or annually. Most businesses submit returns electronically through the French tax authority’s online portal or authorized software.
VAT Schemes
The French tax system offers several VAT schemes to simplify accounting for smaller businesses, including the “Régime de la micro-entreprise” (Micro-enterprise Regime), “Régime réel simplifié” (Simplified Regime), and “Régime réel normal” (Normal Regime). Each has specific eligibility criteria, turnover limits, and simplified tax calculation methods.
France VAT Information for Businesses
VAT Registration
Businesses carrying out economic activities in France must register for VAT if their turnover exceeds the threshold. Registration is done through the French tax authority. Once registered, businesses receive a VAT number (Numéro de TVA) and must charge VAT on their taxable supplies, submit regular VAT returns, and keep proper VAT records for at least 10 years.
VAT Accounting
Proper VAT accounting is essential for compliance in France. Businesses must maintain accurate records of all sales and purchases, VAT invoices issued and received, and any adjustments or corrections. Electronic record-keeping is increasingly mandatory, and records must be stored in accordance with French tax regulations.
International VAT
Special VAT rules apply to international transactions in France. Goods exported to non-EU countries are zero-rated, while imports are subject to VAT. Services to customers outside the EU may also be zero-rated. Businesses trading internationally must understand the place of supply rules and may need to register for VAT in other EU countries through the OSS (One-Stop Shop) system.
VAT Reclaims
Businesses can reclaim VAT on purchases used for business purposes in France. This includes goods, services, and some capital items. There are restrictions on reclaiming VAT for certain expenses, such as business entertainment, cars, and some goods used for both business and personal use (partial exemption).
VAT Penalties
The French tax authority can impose penalties for various VAT compliance failures, including late registration, late payment, late submission of returns, and errors in returns. Penalties can range from fixed amounts to percentages of the tax due, depending on the severity and frequency of the failure. Interest is also charged on late payments.
VAT Planning
Effective VAT planning can help businesses minimize their VAT burden legally in France. This includes using the most appropriate VAT regime, timing purchases and sales strategically, understanding partial exemption rules, and taking advantage of available reliefs and exemptions. Professional advice is recommended for complex VAT situations, especially for international businesses.