French look for égalité in VAT rate
01 January 2000
French hotel and catering associations are lobbying their government to reduce the VAT levied on restaurant meals from 20.6% to just 14%.
At the moment, fast-food restaurants, take-aways and contract catering services in France enjoy a reduced VAT rate of 5.5%. The Fédération Nationale de l'Industrie Hôtelière and the association of public restaurants (SNRPO) argue that this two-tier system distorts competition and penalises restaurants, bars and cafés.
They claim a middle rate of 14% for restaurants would create more than 12,000 new jobs.
