Wednesday November 25, 2009
French officials have rejected a proposal to abolish the cheap rate of VAT for restaurants.
The senate’s finance committee suggested that VAT for restaurants should be reverted from the current 5.5 per cent back to 19.6 per cent because establishments have failed to pass the rate cute on to customers. The suggestion was subsequently rejected by senators.
In a vote of 203 against versus 126 for, senators disagreed with the committee’s assertion that the scheme, which is expected to cost about three billion euros a year in lost revenues, is out of proportion and unjustifiable in the current economic climate.
Government spokesperson Luc Chatel told Europe 1 that the potential threat of a VAT rate increase should serve as a warning to restaurant owners to pass on reduced prices on to their customers.
The VAT rate reduction was introduced earlier this year in July and requires restaurant and cafe owners to reduce the prices of at least seven key menu items.
Thursday July 16, 2009
A leading tourism firm has revealed it is already reaping the benefits of the French government’s decision to cut VAT.
Eurocamp has revealed that the move to reduce the tax from 19.6 per cent to 5.5 per cent has already had an impact on its booking numbers, as tourists look to enjoy cheap holiday breaks in the country.
The company operates 88 of its camping sites in France and claims the VAT cut is "already a favourite" with its customers.
Chris Hilton, the spokesman for the firm, said: "This is great news for couples or families wishing to hop across the channel and enjoy a holiday in France, as their money should now go much further."
High-speed rail service Eurostar also recently welcome the decision to cut VAT, with its director of communications Simon Montague stating it would do much to attract Britons to holidays in France.
Thursday July 9, 2009
High-speed rail service Eurostar has welcomed the French government’s decision to cut VAT charged on services in restaurants and eateries in the country.
According to the travel company, the cut from 19.6 per cent to 5.5 per cent means the rate is equal to that charged in supermarkets and will be welcomed particularly by British visitors to France.
Simon Montague, director of communications at Eurostar, said the move was "really good news", particularly for those planning short breaks on the other side of the Channel.
He added: "A little break can make a big difference, and this large reduction in VAT on meals in restaurants and cafes will make people’s money go further."
Cathy Ranking, UK sales and marketing manager for accommodation provider P&V, recently told Travelmole that the French VAT cut will give the area’s tourism sector a major boost.
Tuesday June 9, 2009
France’s Budget Ministry has announced plans to make carbon credits VAT-exempt, according to reports.
It is believed that the decision has been inspired by speculation over a potential tax scam, which would have seen firms import VAT-free goods and sell them on to domestic clients with a tax charge.
According to Reuters, specialist permit company BlueNext has claimed such rumours are "unsubstantiated".
However, a Budget Ministry source told the news provider: "There has been no evidence of VAT fraud.
"It is only a rumour … but it could have potentially hurt BlueNext’s ability to compete, so we had to react."
Last month, France announced the launch of a VAT cut on dining out in the country.
It is hoped the move, which will come into force from next month, will help to boost tourism and preserve the country’s culinary reputation.
Wednesday May 27, 2009
Ministers in France have been given approval by the European Union (EU) to cut the sales VAT it charges on eating out in the country.
In a move that is hoped will boost tourism, the sales tax on French restaurants and cafes will be reduced from 19.6 per cent to 5.5 per cent from the start of July.
Reuters reports that the move is likely to lead to a major increase in lost revenues for the country’s government, but the boost to restaurant business is expected to offset such issues.
Economy minister Christine Lagarde said: "The reduction in VAT is going to let France…conserve and improve its culinary reputation."
Earlier this month, the EU revealed that its member states can offer reduced VAT rates on a number of labour-intensive services, including eateries, clothing and shoe-repair firms.
Tuesday April 28, 2009
Ministers in France have been discussing cutting VAT in the restaurant industry, according to reports.
From July, diners in the country could benefit from cheaper costs of eating out if ministers and restaurant industry chiefs agree to reduce VAT for customers from 19.6 per cent to 5.5 per cent.
The cost of a typical ‘plat du jour’ will drop by ten per cent and a list of a dozen "everyday items" set to benefit will be produced by trade officials.
Agreement was secured with the European Union for the VAT drop after Germany agreed to end a seven-year veto against the scheme, which had originally been proposed by President Chirac.
Herve Novelli, trade minister for France, said: "A customer should be able to order a meal entirely subject to the full VAT reduction."
Prime minister of France Francois Fillion recently dismissed the possibility of increasing VAT and other taxation in the future.
It was suggested that tax rises could be used to combat a predicted slow recovery in the country’s economy during 2010, according to Tax-News.com.
Thursday April 23, 2009
The prime minister of France has spoken out and dismissed the possibility of VAT rises, it has been reported.
Francois Fillon has hit out at suggestions the French government was toying with the idea of increasing taxes in order to combat a predicted slow recovery in the country’s economy in 2010, reports Tax-News.com.
He claims an increased level of taxation in France would "not serve to boost growth" in the economy, but may "exacerbate the financial crisis and prevent economic recovery".
Mr Fillon did however outline plans to introduce a "confiscatory" tax in final salary pensions which are enhanced for some senior company managers, particularly in the banking sector.
He described this practise as "unacceptable" and added the possibility of the tax will be examined in time for the next Budget.
It was recently reported the new prime minister for Hungary, Gordon Bajnai, will reveal a four-point increase in VAT, which would see levels hit 24 per cent in July.
