Calculating VAT rates and determining prices excluding or including tax doesn't have to be complicated. As experienced tax professionals, we break down the essential formulas for accurate results.
In France, Value Added Tax (VAT) varies by product or service. The standard rate of 20% applies to most goods and services. Unprocessed agricultural products face an intermediate 10% rate. A reduced 5.5% rate covers food, hygiene products, gas, and electricity. Only Social Security-reimbursed medicines qualify for the super-reduced 2.1% rate. Here's how to quickly compute VAT, ex-tax (HT), or all-taxes-included (TTC) prices.
VAT is an indirect tax embedded in the sale price of goods and services, ultimately paid by consumers. Businesses add VAT to their charges, creating an ex-tax price (HT) and an all-taxes-included price (TTC). Customers pay TTC, while companies record HT and remit collected VAT to tax authorities via a dedicated account.
To find the TTC price from HT, multiply by:
VAT amount = TTC - HT.
Example: A product at €1,000 HT with 20% VAT. TTC = 1,000 × 1.2 = €1,200. VAT = €200.
To find HT from TTC, divide by:
VAT amount = TTC - HT.
Example: €2,500 TTC with 10% VAT. HT = 2,500 / 1.1 ≈ €2,272.72. VAT ≈ €227.28.
VAT-registered businesses must submit declarations online at https://cfspro.impots.gouv.fr. Options include annual, quarterly, or monthly filings based on turnover and your tax regime.
