The Article 38 of Law No. 2019-1479 of 28 December 2019 2020 Finance introduced a definition of alcoholic beverages for the purpose of the added tax (VAT). To this end, it creates a new article 298 octodecies of the General Tax Code (CGI) which distinguishes:
– “alcohols and alcoholic beverages” which designate all alcoholic products, regardless of their qualification as beverages. These products are subject to specific rules compared to other products with regard to the definition of taxable transactions ( CGI, art. 256 bis, I-2 ° ), territoriality ( CGI, art. 258 B, I-1 ° ) and exemptions ( CGI, art. 262 ter, I-1 ° ). The introduction of the definition does not induce any change in law as regards the scope of these rules;
– “alcoholic drinks” which designate the only products that can be qualified as drinks. These alcoholic beverages are excluded from the reduced VAT rates provided for in article 278-0 bis of the CGI and in article 279 of the CGI .
These definitions clarify the rules to be applied, which correspond to the historical practices of economic operators and the administration, by specifying that the alcoholic character is characterized by an alcoholic strength by volume exceeding 1.2% or, in the case of beers within the meaning of the section 520 of the CGI , 0.5%.
They are consistent with those set at European level for the application of excise duties, included in national law in the area of indirect contributions ( CGI, art. 302 B ), as well as with those set in national law for the field of contributions on non-alcoholic beverages ( CGI, art. 1613 ter ; CGI, art. 1613 quater ). On the other hand, they differ from the definition of alcoholic beverages resulting from EEC Regulation No 2658/87 of the Council of 23 July 1987 on the tariff and statistical nomenclature and on the common customs tariff , in the sense of which all the beverages of ‘an alcoholic strength greater than 0.5% (and not only beers) are considered alcoholic beverages.
In addition, article 38 of law n ° 2019-1479 of 28 December 2019 of finance for 2020 specifies that alcoholic beverages are excluded from the reduced rate of VAT provided for in a bis of article 279 of the CGI relating to revenues. from the provision of meals in company canteens, thus aligning their regime with that of sales to be consumed on site or sales to take away for immediate consumption.
Finally, in line with these changes, the presentation of certain comments relating to the reduced rates (food products and drinks excluded from the reduced rate and special regime for company canteens) is clarified.
Source Bofip
