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France rules out VAT rise

  • VAT
  • 28 August 2011 | Richard Asquith

France rules out VAT rise

The French Finance Minister, Francois Baroin, has eliminated the prospect of a French VAT increase as part of the review of potential measures to bring the government deficit down.

Since consumption is such a large component of the French economy, the government has decided to look at other potential revenue rises. Baroin has been charged by President Sarkozy to produce a range of cost-saving measures and potential tax rises. Changes to income and corporation taxes have also been ruled out. France has not balanced its annual budget since the 1970's. With growth in France now stalled at close to zero, measures are required to demonstrate to the financial markets that it can rebalance its economy.

The French VAT rate is currently 19.6%, which is below the European Union average VAT rate of just over 20%.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.