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Applicable VAT rates in the restaurant sector
The following VAT rates are applicable in the restaurant sector:
- A standard rate of 20 %
- An intermediate rate of 10 %
- A reduced rate of 5.5 %
The applicable VAT rate varies according to the type of product sold (beverages or foodstuffs) and according to the mode of consumption. A distinction is made between “immediate consumption” and “deferred consumption”.
If the product is sold in a container or packaging that allows it to be preserved, this is known as deferred consumption. If the opposite is true, this is known as immediate consumption (i.e., it can be consumed on the premises).
VAT in the restaurant sector: VAT on beverage sales
The following VAT rates apply to the sale of beverages in the restaurant sector:
- 20%: for sales of alcoholic beverages, irrespective of the mode of consumption
- 10%: for non-alcoholic beverages sold for immediate consumption, served in containers that do not allow them to be preserved (glasses, cups, etc.)
- 5.5%: for non-alcoholic beverages, sealed in containers that allow them to be preserved (bottles, cans, cartons, etc.) and consumed later.
VAT in the restaurant sector: VAT on food sales
The VAT on the sale of food items (starters, dishes, desserts, etc.) for immediate consumption is 10%.
Since 2014 (following the 2012 Amending Finance Act), a reduced VAT rate of 5.5% applies to the sale of food packaged in containers that allows it to be preserved for consumption at a later date. For example, the rate would be 10% for the sale of unpackaged ice cream served in a bowl and 5.5% for ice cream packaged in a container.
Remember to take these different VAT rates into account when drawing up your restaurant’s business plan and financial forecast!
Good to know:
For restaurants that offer takeaway or home delivery, cooked and delivered meals (pizzas, sushi, salads, sandwiches, etc.) are subject to the 10% VAT rate since these dishes are meant to be consumed rapidly. Sealed beverages, on the other hand, are subject to the following rates: 20% for alcoholic beverages and 5.5% for non-alcoholic beverages. Drinks sealed in cans or bottles, for example, may be consumed at a later date.
Source: Service-public.fr
