Standard VAT rate on all bundled internet-TV ('triple play') offers
Article 26 of the 2011 Finance Act rewrites point b octies of Article 279 of the General Tax Code: the 5.5% reduced rate on TV service subscriptions no longer applies when TV is included in a single offer that also provides internet access, except for the share of the subscription matching the distribution rights acquired by the provider. Until then, half the price of 'triple play' offers benefited from the reduced rate. To offset the effect on another tax, Article 32, from a Senate culture committee amendment, grants a 50% allowance on the telecommunications services tax due on these offers. The measure applies to VAT due from 1 January 2011.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
Internet providers apply the standard VAT rate to a larger share of their bundled subscriptions, which may be passed on in prices. The Senate general report estimates the VAT gain at €1.1 billion a year.
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
President of the Republic signature
Publication au Journal officiel
Possible referral to Constitutional Council
Décision de conformité / censure partielle
National Assembly has the final say
Si échec CMP
Joint committee
Désaccord éventuel
Debate and vote
Debate and vote
Débat et vote en séance publique à l'Assemblée nationale, ou engagement de la responsabilité du Gouvernement (article 49.3)
Council of Ministers
Validation interne