5.5% rate applies to subscription-based distribution networks of electricity, combustible natural gas, and heat energy

In accordance with B of article 278-0 bis of the general tax code (CGI) , the reduced rate of 5.5% of value added tax (VAT) applies to subscriptions relating to electricity deliveries, combustible natural gas and heat energy.

These provisions constitute an ad hoc rule which derogates from the general principles for determining the rate resulting from the combined reading of article 257 ter of the CGI and article 278-0 of the CGI relating to the treatment of composite offers and based on the uniqueness of the rate and the non-consideration of ancillary elements.

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