TaxCorporate TaxFrench VAT win on restaurant meals

French VAT win on restaurant meals

Government wins seven-year case with EU over rate of VAT applied to restaurant meals

The rate of VAT on restaurant meals will be cut after the French government
won a seven-year battle with the European Union.

Last week France won German approval for its proposal to slash the VAT rate
on restaurant meals, according to
ft.com

Under the terms of the proposal, French President Nicolas Sarkozy would cut
VAT on restaurant meals from 19.6% to 5.5%, which equates to a £3bn cost to the
taxpayer.

The move has been met with criticism by experts who question whether the cut
will be absorbed by restaurant owners or patrons.

Further Reading:

Retailers
urge Darling to delay VAT increase

New
tax compliance regime looms

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