Canal+ Warns €200m Hit from French VAT Plans

• The French finance ministry is proposing to raise VAT on linear pay-TV from the reduced 10% rate to the standard 20% rate in the 2027 budget.
• Canal+ says the change would cost it about €200 million per year and could force higher prices, with new subscriptions potentially rising by nearly €3 a month.
• Because many existing subscribers are on fixed-price contracts, Canal+ says it could not immediately pass the full tax increase on to all customers.
• Canal+ warned the VAT change could lead to significant job cuts.
• The company also said the proposal could affect its €980 million, five-year commitment to French cinema, which may be tied to the continued 10% VAT treatment.

Source: broadbandtvnews.com

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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