In France, VAT (TVA in French) is chargeable at one of two different rates. The standard French VAT rate is 19.6% and the secondary VAT rate reserved for certain sectors such as transportation. Food sold in restaurants and by catering companies has recently been relegated from 19.6% to 5.5% to be in line with takeaway food outlets. This government initiative is an attempt to give a boost to the restaurant sector. Soft drinks are also subject to 5.5% VAT but alcohol is subject to 19.6% VAT. When receiving quotes from caterers or restaurants, the difference in price between the food and alcoholic beverages can be rather shocking sometimes, this can be explained by the 14.1% difference in VAT.
In France, companies refer to prices as being either HT (French abbreviation for ‘hors taxe’) or TTC (French abbreviation for ‘toute taxe comrprise’). HT is literally translated as ‘without tax’, this is the net price before any VAT has been added. TTC can be translated as ‘including tax’, which of course means that the price is inclusive of VAT.
The price that you, the end consumer will have to pay, is the TTC price, inclusive of tax. The actual amount that a company will usually earn will be the HT amount exclusive of tax. The difference between these two prices is the amount of VAT which companies pay each month to the french government. Be aware that companies in France tend to quote in HT more often than TTC. It can be a little confusing when trying to work out how much things are really going to cost so don’t hesitate to ask in advance for a quote in TTC.
Certain companies in France are VAT exempt depending on their annual turn over, their sector or activity. You may find that if you rent a villa or other private property for your wedding that VAT will not feature on the estimate. This is because VAT does not apply to accommodation when it is booked exclusive of any additional services. Also a photographer or independent wedding planner may also be VAT exempt if they have a ‘self-employed’ status (‘auto-entrepreneur’ in French) . In both cases, if VAT is not mentioned then the price quoted will be the price you pay.
If you by any chance have your own VAT registered company through which you are going to pass the expenses related to your wedding, you may be able to claim back the VAT which you have paid. There is a company which specialises in the recovery of VAT; they earn their money through a commission on the funds they manage to get back on your behalf. For more information, you can contact the company TEVEA International by email: mail@tevea.fr.
[...] each service or product provided with the amounts before (HT) and after (TTC) the addition of French VAT. The VAT rate should be detailed for each [...]