Let’s talk VAT ! VAT (Value Added Tax) is a tax on consumption. As its name suggests, it is a tax that applies only to the value added to the product or service.
Today, VAT is an integral part of the daily lives of consumers and traders in most countries.
The principle is simple: the price paid by end consumers includes the sales price excluding tax and a price increase corresponding to VAT . Traders collect the tax new zealand whatsapp number data from their customers and pay it to the State. But before that, the VAT previously paid to their own suppliers (also called advance tax and deductible VAT) will be deducted. Suppliers then in turn pay the VAT collected to the State.
While the operating principle remains the same for all countries applying VAT, the rates and categories of taxation may vary.
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The different VAT rates in France
Since its introduction in 1968 in France, VAT has cell p data been divided into more than five types and the rates have been modified around twenty times.
In mainland France , there are four VAT rates :
The standard rate of 20% that applies to most goods and services.
The intermediate rate of 10% which applies, for example, to food products intended for immediate consumption, to hotel accommodation and to passenger transport.
The reduced rate of 5.5% which applies, for example, to prepared drinks intended for later consumption, social accommodation service