Are you planning to visit Paris and wondering about the Value Added Tax (VAT) rates? Well, you have come to the right place!
VAT is a tax that is added to the price of goods and services in most countries, including France. In this article, we will discuss how much VAT you can expect to pay in Paris.
What is VAT?
Before we dive into the VAT rates in Paris, let’s first understand what it is. VAT is a consumption tax that is added to the price of goods and services at each stage of production or distribution. It is ultimately paid by the end consumer, but it is collected and remitted by businesses on behalf of the government.
VAT Rates in Paris
In France, there are three different VAT rates: standard rate, reduced rate, and super-reduced rate. These rates vary depending on the type of product or service being sold.
The standard rate applies to most goods and services and currently stands at 20%. The reduced rate applies to certain products such as food items, books, newspapers, and public transportation tickets and currently stands at 5.5%. Finally, the super-reduced rate applies only to a few specific products such as basic necessities like water supply and electricity for residential use, which are taxed at 2.1%.
Refund of VAT
As a non-European Union (EU) resident visiting France, you may be eligible for a refund on the VAT paid on your purchases under certain conditions. You must have spent more than €175 at one participating store during your stay in France and have proof of your purchases such as receipts. You can claim this refund when leaving France by presenting your receipts to customs officials at your point of departure.
- Note: There are many companies offering tax refund services for tourists in Paris; however, they charge a commission fee for their services.
Conclusion
In summary, the VAT rates in Paris are 20% for the standard rate, 5.5% for the reduced rate, and 2.1% for the super-reduced rate. As a non-EU resident, you may be eligible for a VAT refund on your purchases if you meet certain conditions. Remember to keep your receipts and present them to customs officials at your point of departure.
Happy shopping!