What is the VAT rate for catering or food sales in France?

Distribution activity (referred to as deferred consumption): foods and food 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 French Tax Code subjects to the reduced rate of 5.5% ” water and beverages 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 No. 10), the concept of “products Destined For human consumption” refers to all “products” used for human consumption”, namely:

“All products which, by their nature, constitute foods, simple or compound foods, Likely to be used as is for human consumption.

By nature, food should be understood to mean:

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

The exceptions:

product sales are still subject to 20%

The tax administration indicates in the administrative doctrine (BOI-TVA-LIQ-30-10-10, paragraph 1) that this rate applies “to products used for human consumption that are not expressly subject to any other rate. ”.

sales of products other than catering activities 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. vegetable margarines and fats;
   
   
4. caviar;
   
   

The sale of alcohol is still subject to 20%

The sale of alcoholic products is still 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 linked to take-away or on-site catering.

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

Products that can be consumed as they are by humans but which have the quality of drugs are excluded from the food category. Products with curative or preventive properties are considered as such. both in humans and in animals (Tax Administration Doctrine, BOI-TVA-LIQ-40-10, paragraph no. 35).

Products with curative or preventive properties are considered as such. both in humans and in 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 curative benefits). In addition, veterinary drugs are subject to a rate of 20%.

Catering activity: operations are subject to the 10% rate

In principle, catering activities are subject to the 10% rate, except in the case of alcohol or take-away products that could be consumed at a later date by the customer.

Take-away food: subject to 10% with exceptions

The principle

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

The exception

Administrative doctrine provides that certain products may benefit from the reduced rate of 5.5% although sold as take-away as long as their nature allows 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 for take-out or delivery (excluding certain products: pizzas, quiches, sushi, sandwiches, etc.).

Thus, as far as take-away sales are concerned, it should be noted that:

• the sale of foodstuffs for delayed 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 French Tax Code provides that “sales to be consumed on site, excluding 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 supplies of services and not supplies of goods.