Reduced 5.5% VAT rate on cinema tickets

The 2014 Finance Act moved cinema admission fees, and transfers of rights on films shown in cinemas or at festivals, from the intermediate rate to the reduced rate (article 278-0 bis, G and H, of the General Tax Code). The bill proposed a 5% rate; since the same act kept the reduced rate at 5.5%, the rate applied is 5.5%. It applies to transactions for which VAT becomes chargeable from 1 January 2014.