With effect from 1 January 2014, the rates of value added tax (VAT) in France have been changed and are now as follows:
- The standard VAT rate is increased from 19.6% to 20%.
- The intermediary VAT rate which is applicable to the food service industry, work performed on residential properties, domestic passenger transport, hotel industry, drugs authorized for marketing but not covered by social security, etc. has been increased from 7% to 10%.
- The VAT rate applicable in Corsica (construction work, etc.) has been increased from 8% to 10%.
