Applicable VAT Rate for Services Supporting Household Waste Collection and Treatment for Local Authorities

• Since March 1, 2026, a reduced VAT rate of 5.5% applies to services related to the collection and treatment of household and similar waste provided to certain local authorities.
• This rate covers services such as transport, transit, storage of waste residues, and maintenance of waste management equipment, provided that the cost of supplies used does not exceed 50% of the total service cost.
• If the value of supplies exceeds 50% of the total cost, the supplies are taxed separately (usually at 20%), and the service portion remains at 5.5%, requiring a split in VAT rates.
• Maintenance and repair services for waste processing equipment (e.g., loaders, screeners, shredders) are included under the reduced rate, subject to the same supply cost condition.
• The reduced rate does not apply to the delivery of goods, which are taxed at their own applicable VAT rate.

Source: bofip.impots.gouv.fr

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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