Easily calculate your VAT
Add or remove VAT from your amounts at different rates
What is VAT?
Value Added Tax (VAT) is an indirect tax on consumption.
VAT is collected by businesses at each stage of the economic process and is ultimately borne by the final consumer.
How does VAT work?
VAT is collected by businesses at each stage of the economic process and is ultimately borne by the final consumer.
Different VAT Rates
- Standard rate (20%) : Applies to the **majority** of goods and services.
- Reduced rate (10%) : Restaurants, transport, home renovation...
- Special rate (5.5%) : Food products, books, personal care services...
- Specific rate (2.1%) : Reimbursable medicines, press publications...
VAT Calculation
To calculate the VAT amount from a net price, multiply this price by the applicable VAT rate (percentage divided by 100).
Example: For a product priced at €100 excl. VAT with 20% VAT, the VAT amount will be 100 × 0.20 = €20.
Did you know?
VAT was introduced in France in 1954 and is now applied in over 160 countries worldwide.
VAT rates by country
VAT rates vary significantly from country to country. Each country defines its own rates according to its fiscal and economic policy.
VAT rates in Europe
| Country | Standard rate | Reduced rates |
|---|---|---|
| France | 20% | 10% | 5.5% | 2.1% |
| Germany | 19% | 7% |
| Spain | 21% | 10% | 4% |
| Italy | 22% | 10% | 5% | 4% |
| United Kingdom | 20% | 5% | 0% |
Applications of different VAT rates
Standard rate
Applies to the majority of goods and services: electronics, clothing, professional services, etc.
Intermediate rate
Applies to restaurant services, passenger transport, renovation work, etc.
Reduced rate
Applies to food products, books, non-reimbursable medicines, personal services, etc.
Super reduced rate
Applies to reimbursable medicines, press publications, certain cultural events, etc.
VAT exemptions
Some activities are exempt from VAT, including:
- Medical and health services
- Educational services
- Financial and insurance services
- Certain real estate transactions
- Exports and intra-community deliveries
VAT threshold
In many countries, small businesses with turnover below a certain threshold may be exempt from charging VAT. In France, this threshold is €85,800 for goods sales and €34,400 for service provision.
Frequently Asked Questions about VAT
Find answers to the most common questions about VAT.
Collected VAT is the one you charge your clients and must remit to the government. Deductible VAT is the one you pay on your purchases and can deduct from the VAT collected. The difference (collected VAT - deductible VAT) is what you must pay to the government in your VAT return.
By default, micro-entrepreneurs benefit from a VAT exemption (no collection or deduction). However, if your turnover exceeds certain thresholds (€85,800 for commercial activities or €34,400 for services), you must switch to the regular VAT regime. The declaration is usually done on form 3310-CA3, either monthly or quarterly depending on your regime.
For monthly returns, the deadline is usually the 15th of the month following the reporting period. For quarterly returns, it’s usually the 15th of the month after the quarter. Companies with turnover over €4 million must file monthly. Deadlines may vary depending on your situation and the fiscal calendar.
To recover VAT on your business expenses, you must be subject to VAT and have a valid invoice showing the VAT. In your VAT return, you deduct the VAT you paid (deductible VAT) from the VAT you collected. Some expenses have limited deductibility, such as fuel or meals, which may be partially deductible.
Yes, online services are subject to VAT. Since 2015, for electronic services provided to individuals (B2C), the VAT rate applied is that of the client’s country. For services provided to businesses (B2B), the reverse charge mechanism applies: the business client declares and pays the VAT in their own country.
Tax news
Stay updated with the latest news on VAT and taxation.
Change in VAT rate for the restaurant sector
The government announced a change in the VAT rate for the restaurant sector, from 10% to 5.5% starting July 1, 2025.
New VAT rules for e-commerce
The European Union has adopted new rules on VAT for online sales, with significant changes for platforms and sellers.
Read moreSimplified VAT declaration procedures
A new online platform has been launched to simplify VAT declaration and payment procedures for small and medium-sized businesses.
Read moreVAT Glossary
View all termsVAT Base
The total amount on which VAT is calculated. It represents the taxable basis to which the VAT rate applies.
VAT Credit
Occurs when deductible VAT exceeds collected VAT during a reporting period. This credit can be refunded under certain conditions.
VAT Due Date
The point at which VAT becomes payable to the State. This depends on the type of transaction: for goods, it’s at delivery; for services, it’s at payment or invoicing if invoicing occurs first.