VAT is a tax on goods collected by businesses and, ultimately, paid entirely by the final purchaser.
VAT is applied at different rates depending on products or services taxed. There are three rate:
- the standard rate is fixed at 20%,
- the intermediate rate is fixed at 10 %;
- the reduced rate is fixed at 5.5% (for food products, most notably).
A specific rate of 2.1% is applied to reimbursable medicines, amongst other things.
Some measures are particular for Corsica and the overseas departments.