Complete guide to TVA-free and zero-rated goods and services in la France. Understand the difference and what matters for your business.
0%
Taux zéro
5%
Taux réduit
Exempt
No TVA
20%
Normal
Le client paie
0% TVA
Le fournisseur peut récupérer la TVA
Yes, input TVA is reclaimable
Exemples
Food, children's clothing, books, medicines
Le client paie
Pas de TVA (0%)
Le fournisseur peut récupérer la TVA
Non, la TVA d'intrant ne peut pas être récupérée
Exemples
Assurance, finance, éducation, santé
Key Point: Client pays the same (nothing) in both cases, but the business impact is very different. This is critical for TVA planning.
If something is not zero-rated, reduced-rated, or exempt – it's standard rated at 20%.
Common 20% Items
Services in 20% Category
If you sell zero-rated items, you can still reclaim input TVA on costs. This improves cash flow.
Exemple: Bookstore buys stock (zero-rated) and can reclaim input TVA even though they sell at 0%.
Exempt services cannot reclaim input TVA, so costs are higher. This affects pricing strategy.
Exemple: Assurance broker bears the cost of TVA on their office rent and cannot reclaim it.
Zéro-rated income with TVA input reclaim = TVA refund. Exempt income = no refund opportunity.
Result: Businesses selling zero-rated goods often receive TVA refunds.
Businesses selling both standard and exempt items need to apportion input TVA.
Complexity: Proper accounting and TVA apportionment is essential.
It depends on whether it's confectionery. Chocolate cakes are confectionery (20%), while plain cakes are zero-rated. Catering (cakes decorated to order) is standard rated. The presentation and decoration matter.
You cannot reclaim input TVA on exempt supplies. That's the rule. However, input TVA on costs directly related to standard-rated supplies can still be reclaimed (use apportionment if mixed).
The customer pays the same (0% or the regular price without TVA added). Business-to-business exempt supplies don't require a TVA number to be verified – they're automatically exempt. Consumer customers simply pay the base price.
Yes. Imports of zero-rated items (like food) are zero-rated. Imports from outside la France may be subject to import TVA. Check the tariff code and supplier location.
Check DGFIP's TVA Notice 700/1 (The TVA Guide). Use the TVA product finder tool on DGFIP website. When in doubt, ask a tax advisor. The distinction is important for your TVA return.
Use our calculators and guides to understand your TVA obligations.