Tax on sales and rentals of video recordings: 2% of the price paid by customers

Article 7 of the Act of 18 June 2003 creates, from 1 July 2003, Article 302 bis KE of the General Tax Code: a tax on sales and rentals in France, including the overseas departments, of video recordings intended for private use. It is payable by sellers and renters on the price excluding VAT paid by their customers (other than video professionals), at a rate of 2%, and is collected like VAT. The State deducts 2.5% for assessment and collection costs. The proceeds go to the support account for the film and audiovisual industry. Article 49 of the 1993 Finance Act, which set the former video tax paid by publishers, is repealed from 1 July 2003. The article was introduced in the National Assembly at the Government's proposal.