5.5% VAT on on-premises restaurant sales (excluding alcoholic drinks)
Article 22 of the Act of 22 July 2009 on the development and modernisation of tourism services adds on-premises food and drink sales, excluding alcoholic beverages, to Article 279 of the General Tax Code. These sales, previously taxed at the standard rate of 19.6%, are subject to the reduced rate of 5.5% for services provided from 1 July 2009. The same Act removes the employment aid for hotels, cafés and restaurants and creates a temporary 0.12% levy on turnover. The rate was raised to 7% on 1 January 2012.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
Restaurants, cafés and catering businesses apply a 5.5% VAT rate instead of 19.6% to meals and non-alcoholic drinks served on the premises, from 1 July 2009 to 31 December 2011. According to a Senate information report, the loss of VAT revenue was estimated before the reform at €3 billion a year, a net cost of €2.4 billion after removal of the sector's aid.
Official references
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
President of the Republic signature
Publication au Journal officiel
Debate and vote
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
Debate and vote
Débat et vote en séance publique à l'Assemblée nationale, ou engagement de la responsabilité du Gouvernement (article 49.3)