France Tax Agency Seeks Comments on Changes to VAT Rate Application for Energy Subscriptions, Supplies

The French General Directorate of Public Finance June 5 opened a consultation on changes to the VAT rate application for energy subscriptions and supplies. The consultation includes measures to: 1) abolish the reduced 5.5 percent VAT rate for electricity and gas delivery subscriptions and apply the standard 20 percent VAT rate, applicable to subscriptions relating to periods beginning on or after Aug. 1, regardless of payment or invoicing dates; and 2) require the energies in consideration for granting the reduced VAT rate to heat supplies to be produced at least 50 percent from renewable energy, with the new definition entering ...