In order to limit the cost of certain products vital to the world-wide struggle against this pandemic, France has decided to temporarily reduce the VAT rate applied to some hygiene-related products and equipment. For those, the VAT rate will go down from 20% to 5.5%.
Which products does the VAT rate reduction apply to?
All these measures will be applicable to some specific products:
- Protective breathing masks;
- Protective gear (gloves, hygiene caps, overalls);
- Goods pertaining to personnel hygiene (hydroalcoholic gel).
Which operations does it apply to?
The VAT rate reduction on these goods applies to all operations performed on the French territory:
- Importations in France from non-European countries (from China, for example);
- Local purchase/resale on the French territory;
- Intra-community deliveries leaving from France;
- Intra-community purchases going to France;
- Exportations leaving from France.
When does the VAT rate reduction come into force?
The VAT rate reduction’s date of application varies depending on the types of goods and the types of operations:
- Regarding masks and protective gears:
- Application of the reduced rate to intra-community deliveries and acquisitions performed starting 24th March 2020;
- Application of the reduced rates to other operations (importations, local sales…) performed starting 26th April 2020.
- Regarding products related to personnel hygiene:
- Application of the reduced rate to intra-community deliveries and acquisitions performed starting 1st March 2020;
- Application of the reduced rates to other operations (importations, local sales…) performed starting 26th April 2020.
Currently, it has been decided that the reduced VAT rate will apply until 31st January 2021.
Source: Legifrance (in French)
