The French government has gone ahead with its 0.4% increase to the standard rate of VAT (called TVA in France) to 20%, effective from 1 January 2014.
This increase is a small change when compared with the recent hikes in VAT rates across Europe.
It also brings to an end the unusual French VAT rate of 19.6%, with the French government hoping to increase revenue.
From 1 January 2014 the Cypriot VAT rate increased by 1% to 19%.
As with France, this now brings Cyprus in line with the recent VAT increases across Europe though a more conservative increase.
For further details on EU VAT rates along with other useful information ACCA produces a helpful analysis of the 28 EU countries that includes details on:
- what VAT is called in each member state;
- the EU country code;
- the standard rate of VAT;
- the form and type of VAT registration number used in each member state;
- the common VAT filing period;
- details on government website details in order to access further information;
- non-resident VAT threshold.
The last bullet point is a recent addition and highlights the need for businesses operating in other EU member states to be careful.
As you will note, the threshold to register in all but two member states now stands at zero including the UK since December 2012.
For more information, visit the 'Related documents' section on this page.
Other EU news
Effective from 1 January 2014, amendments to legislation add new Regulation 137(b), effectively:
- adding Mayotte and Saint-Martin; and
- removing St Pierre and Miquelon from those treated as excluded from the territory of member states and the EU for the purposes of the VAT Act 1994. The territories in question are overseas department, regions or a collective of France.