Overseas VAT: exemption extended to air transport in Guadeloupe, Martinique and Réunion

Article 100 of the 2026 Finance Act extends to air transport the VAT exemption of Article 295 1 1° of the General Tax Code for transport in Guadeloupe, Martinique and Réunion, with the right to deduct maintained (Article 271 V c). According to the amendment behind it, only air freight between Martinique and Guadeloupe was still taxed (at 2.1%); the measure brings all such air and sea passenger and freight transport to a zero rate.