5.5% VAT on concerts: exclusion of venues where consumption is customary, except optional consumption

Article 97 of the 2006 amending Finance Act rewrites the VAT rules for concert tickets (Article 279 of the General Tax Code). The reduced 5.5% rate does not apply to concerts held in venues where it is customary to consume during performances. However, where drinks are served optionally and the operator holds a first-category performance licence, the reduced rate applies to the price of a ticket giving access to the concert only. The earlier provisions specific to such venues (b bis a of Article 279 and c of Article 281 quater) are repealed. The measure applies from 1 January 2007.