VAT rates in restaurants 2025: a complete and detailed guide for professionals

The fiscal challenges of catering

Value Added Tax (VAT) is a crucial element of financial management for catering professionals. With its multiple rates and complex rules, VAT is much more than a simple accounting line — it is a real tax strategy tool. This comprehensive guide aims to dissect VAT mechanisms in the restaurant industry, offering detailed explanations, practical cases and expert advice.

Historical and regulatory context

Origin of VAT in catering

VAT in the restaurant industry has undergone several significant changes since its creation. A key moment was July 1, 2009, when the government implemented a major reform, lowering the VAT rate from 19.6% to 5.5% to stimulate the restaurant sector.

Current legal framework

The legal bases for VAT in catering are mainly defined by:

• Article 278-0 bis of the French Tax Code (FTC)
• Article 279 of the FTC
• The tax instructions in the Official Tax Bulletin (BoFIP)

Detailed table of VAT rates in restaurants

Reduced Rate of 5.5%: Full Decryption

Legal definition

The reduced rate of 5.5% applies to “products intended for human consumption”, according to a precise definition by the tax authorities.

Eligible products

Affected are:

• Soft drinks in sealed containers
• Packaged food products for preservation
• Breads and pastries
• Vacuum prepared meals
• Ice cream in closed packaging
• Packaged fruits
• Packaged yogurts and dairy products

Qualification criteria

Eligibility requirements:

• Destination for human food
• Possibility of conservation
• Adapted packaging

Intermediate rate of 10%: detailed rules

Broad field of application

The 10% rate covers:

• Full meals at the restaurant
• Dishes cooked on site
• Fast food
• Non-alcoholic drinks served immediately
• Meal trays
• Food deliveries

Special cases

• Applies to immediate consumption benefits
• Applies to all types of catering establishments

Standard rate of 20%: major exclusions

Products systematically taxed at 20%

• All alcoholic drinks
• Confectionery products
• Chocolates and derivatives
• Caviar
• Medicine-like products

Complex scenarios and practical cases

Take-out catering: navigating complexity

Principles of taxation

• Standard rate: 10%
• Possible exceptions at 5.5% for preservable products

Detailed examples

1. Pizza to go: 10%
2. Sealed water bottle: 5.5%
3. Instant sandwich: 10%
4. Ice in a sealed jar: 5.5%

On-site catering: specific taxation methods

Fundamental rules

• Quasi-systematic taxation at 10%
• Exclusion of alcoholic beverages (20%)

Extensive accounting and fiscal requirements

VAT administrative management

Regulatory Obligations

• Mandatory use of certified cash register software
• Establishment of daily Z tickets
• Monthly VAT declaration
• Precise breakdown of revenue by rate

Controls and sanctions: understanding the risks

Control device

• Regular tax audits
• Analysis of VAT returns
• Verification of the compliance of the rates applied

Potential sanctions

• Tax adjustments
• Risks of criminal sanctions
• Late payment interest

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In detail

Distribution activity (so-called deferred consumption): foods and dietary supplements are subject to the VAT rate of 5.5% when they are not sold in a catering business

The principle

Article 278-0 bis of the FTC subjects to the reduced rate of 5.5% ” water and drinks other than alcoholic beverages as well as products intended for human consumption ”. This concerns deliveries of food goods that are not intended for immediate consumption.

In this respect, according to the doctrine of the tax administration (BOI-TVA-LIQ-30-10-10, paragraph 10), the concept of “products” Destined for human consumption” is understood to mean all “products used for human consumption”, namely:

“All products which, by their nature, constitute foods, simple or composed, Likely to be used in the state for human consumption.

By nature food, we mean:

• natural food products, as obtained at the agricultural stage;
• industrial food products that do not constitute drugs.”

Exceptions:

Product sales still subject to 20%

The tax authorities indicate in the administrative doctrine (BOI-TVA-LIQ-30-10-10, paragraph 1) that this rate applies “to products used for human consumption” Which are not subject to another rate. ”.

Sales of Products Outside the Restaurant Business That Do Not Benefit from a Reduced Rate

However, some products remain subject to 20% when they are not sold as part of a catering activity. It is about:

1. confectionery products;
   
   
2. Chocolates and all composite products containing chocolate or cocoa. However, some chocolates are allowed at the reduced rate of 5.5%;
   
   
3. margarines and vegetable fats;
   
   
4. caviar;
   
   

The sale of alcohol is always subject to 20%

The sale of alcoholic products is always subject to the 20% rate even within an offer involving numerous products.

Thus, alcohol is always taxed at this rate: this type of product can never benefit from the rates associated with take-out or on-site catering.

Products presented as medicines are subject to 20% unless they are authorized to be placed on the market.

Products capable of being consumed as they are by humans but which have the quality of medicines are excluded from the food category. Products with curative or preventive properties are considered to be such. Both in Humans and Animals (Doctrine of the tax administration, BOI-TVA-LIQ-40-10, paragraph no. 35).

Products with curative or preventive properties are considered to be such. Both in Humans and Animals (Tax administration doctrine, BOI-TVA-LIQ-40-10, paragraph no. 35).

Human medicines are subject to several VAT rates (2.1% or 10% and even 20% if they do not directly have a curative effect). In addition, veterinary drugs are subject to a 20% rate.

Catering activity: operations are subject to the 10% rate

In principle, catering activities are subject to the 10% rate except when it comes to alcohol or products sold to take away that could be consumed at a later time by the customer.

Take-away catering: subject to 10% with some exceptions

The Principle

In principle, these transactions are subject to the intermediate rate of 10% in accordance with article 279 of the FTC. They are treated as deliveries of goods.

The Exception

Administrative doctrine provides that certain products may benefit from the reduced rate of 5.5% even though they are sold to take away as long as their nature allows for delayed consumption. The administration provides a list for illustrative purposes:

• Ice Cream Sold Packaged/Delayed Consumption
• Bread/ pastries and pastries
• Seafood platter;
• Non-alcoholic drinks sold allowing their preservation (bottles, kegs, bricks, etc.);
• Products prepared at a caterer sold to take away or to be delivered (excluding certain products: pizzas, quiches, sushi, sandwiches, etc.).

Thus, for take-away sales, it should be remembered that:

• The sale of foodstuffs for deferred consumption subject to the reduced rate of 5.5%, on the one hand;
• The sale of foodstuffs for immediate consumption subject to the intermediate rate of 10%, on the other hand.
  

On-site catering: always subject to 10%

Article 279 of the FTC provides that “sales to be consumed on site, except those relating to alcoholic beverages that fall under the rate provided for in article 278" (provision of services)” benefit from the 10% rate.

There are no exceptions other than alcohol products.

On-site catering operations are considered to constitute services and not deliveries of goods.

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In-depth frequently asked questions

How do you calculate VAT accurately?

Detailed steps:

1. Identify the exact rate for each product
2. Calculate VAT line by line
3. Add the amounts
4. Verify Overall Consistency

Characteristics of payment methods

• Restaurant Ticket: Does Not Impact the VAT Rate
• Bank card: no impact on taxation
• Cash: no difference in rates

Controlling VAT, a strategic challenge

Understanding and correctly applying VAT rules in catering is essential for:

• Ensuring tax compliance
• Optimizing Financial Management
• Minimize recovery risks
• Improving the Profitability of the Establishment

In need of expertise? Cyplom is there for you!

Navigating the complex meanderings of VAT can be tricky and a source of many questions.
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The Cyplom team is specifically trained to support you in all your tax challenges:

Our dedicated services

• Personalized advice on catering VAT
• Full Tax Audit
• Assistance in case of control
• Optimizing your tax strategy
• Training and awareness-raising

Why Cyplom?

• Extensive legal expertise
• Lawyers specialized in taxation
• Tailor-made approach
• Responsiveness and customer proximity

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