France applies a consumption tax known as the Taxe sur la Valeur Ajoutée (TVA), or Value-Added Tax. This indirect tax is applied to most goods and services at each stage of the supply chain, with the final consumer bearing the cost. Unlike a sales tax, which is typically added at the register, the TVA is already included in the displayed price of nearly everything purchased. This structure makes French pricing highly transparent for international visitors.
The French Value-Added Tax (TVA)
The French TVA is a consumption tax levied on the value added to a product or service, from initial production to final sale. The fundamental distinction is that the price marked is the final price you pay, a concept known as prix toutes taxes comprises (TTC), meaning “price inclusive of all taxes.”
This means the tax is already calculated and included whether purchasing a cup of coffee or a piece of clothing. The business collects the TVA and remits it to the government, minus any TVA paid on their own business expenses. This embedded pricing mechanism simplifies transactions for customers and ensures the tax is collected throughout the commercial process.
Current TVA Rates
France utilizes a tiered structure for its TVA, applying different rates based on the type of goods or services. The standard rate is 20%, which applies to the majority of products and services, including most retail items like clothing and electronics.
Reduced rates apply to specific categories:
- The intermediate rate of 10% applies to prepared foods, restaurant services, hotel accommodation, and passenger transport.
- The reduced rate of 5.5% covers essential goods, such as most food products, books, and specific cultural events and admissions.
- A super-reduced rate of 2.1% applies to items like certain pharmaceutical products and newspapers.
Claiming the Tourist VAT Refund (Détaxe)
Non-European Union residents are eligible to claim a refund on the TVA paid on eligible purchases, a process known as détaxe. To qualify, you must be a resident of a country outside the EU, be at least 16 years old, and have stayed in France for less than six months. The goods purchased must be for personal use and exported from the EU within three months of the purchase date.
The process begins at the point of sale, where you must show your passport to prove non-EU residency and request a tax-free form, which is an electronic slip issued by the retailer. There is a minimum purchase threshold of €100.01, which must be spent in a single store on the same day. Services like hotel stays, restaurant meals, and transportation costs are not eligible for the détaxe refund.
Upon exiting the European Union from a French airport or port, you must present your tax-free form for validation before checking your luggage. This is typically done by scanning the barcode on your electronic slip at a self-service PABLO terminal. The terminal provides electronic validation, replacing the need for a physical customs stamp. Keep the purchased goods readily accessible, as customs officials may require you to show them for verification.
After validation, you can receive your refund through your chosen method, either as a credit to your bank card or as immediate cash at a dedicated counter. The actual refund amount received is less than the full 20% TVA rate, usually falling between 10% and 15% of the purchase price, as administrative fees are deducted by the refund operator. Validating the form at the point of departure is the final step to secure the reimbursement.