VAT on fertilisers and agricultural soil improvers raised to the standard rate
The 2014 Finance Act removed the reduced VAT rate on fertilisers and similar products (repeal of a of 5° of article 278 bis of the General Tax Code), which are therefore taxed at the standard 20% rate. Liming materials usable in organic farming and organic agricultural fertilising materials remain at the reduced rate. The flat-rate refund rates for farmers were raised (5.59% and 4.43%) and a transitional mechanism allowed farmers under the simplified regime to offset part of the VAT against their 2014 instalments.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
For VAT-registered farmers the tax remains deductible; private buyers of these products pay the standard rate. According to the Senate finance committee, the measure raises revenue by about 15 million euros.
Official references
Sources
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
Possible referral to Constitutional Council
Décision de conformité / censure partielle
President of the Republic signature
Publication au Journal officiel
Committee examination
Amendements
Council of Ministers
Validation interne