A tax on consumption

Value added tax is an indirect tax generally included in the price paid by the consumer. A tax-inclusive price (TTC) includes taxes, while a price before tax (HT) excludes them.

Who collects it?

Businesses subject to VAT charge it to their customers. Under the applicable rules, they deduct the VAT paid on their business purchases and remit the difference to the tax authorities. Certain goods or services are subject to special rules or exemptions.

Do not confuse the different levies

VAT applies to consumption, whereas the general social contribution (CSG) applies to various categories of income. The VAT system operates within a common European framework, although rates and certain arrangements depend on national rules.