France has confirmed a reduced 5.5% VAT rate for cooling energy distributed through networks from 21 February 2026, while updating doctrinal comments following a public consultation on VAT treatment of energy subscriptions.
France has clarified that the supply of cooling energy distributed through networks is subject to the reduced 5.5% rate of value added tax (VAT), following an amendment introduced by the Finance Law for 2026.
The clarification was published on 26 August 2026 and follows Article 93 of Law No. 2026-103 of 19 February 2026 on the Finance Law for 2026.
Reduced VAT rate
Article 93 amended Article 278-0 bis of the General Tax Code by inserting a B bis. The provision places the supply of cooling energy distributed through networks under the reduced 5.5% rate of VAT.
The measure applies from 21 February 2026.
Updated doctrinal comments
The publication also updates the doctrinal comments following a public consultation held from 5 June 2025 to 1 September 2025.
The consultation followed the abolition of the reduced 5.5% VAT rate for electricity and gas subscriptions under Law No. 2025-127 of 14 February 2025 on the Finance Law for 2025.
The presentation of the doctrinal comments has also been streamlined as part of the update.
