France has various taxes in place, including the taxe sur la valeur ajoutée (TVA) and the taxe d’habitation and taxe foncière, which are local taxes. Understanding these taxes is important for residents and property owners in France.
The TVA, or value-added tax, is a general indirect tax that is included in the sale price of goods or services and paid by consumers. The tax rate varies depending on the type of product or service. For example, the standard rate is 20%, while the reduced rate is 5.5% and the super-reduced rate is 2.1%. The TVA is collected by businesses and paid to the government.
The taxe d’habitation is a local tax that is due by anyone who occupies a property on January 1st of the year, whether they are the owner, tenant, or occupant. It is associated with the audiovisual contribution, which is payable if you are subject to the taxe d’habitation and occupy a home equipped with a television or similar device. The taxe foncière is also a local tax, but it is due by property owners instead of occupants. It is collected by the state and the revenue is distributed to local authorities to finance public services.
In addition to these taxes, there are other taxes that may be applicable to certain situations. For example, the taxe d’apprentissage is a tax that businesses must pay to fund vocational training. The taxe sur les salaires is a payroll tax that is due by employers that do not pay the TVA. There are also wealth taxes for individuals with high net worth and corporate taxes for companies.
It is important to note that tax laws and rates are subject to change. It is recommended to consult with a tax professional or seek guidance from the government website to stay up to date with the latest tax regulations in France.