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France Proposes Reducing VAT on Energy to 5.5% from August 2025

    From 1 August 2025, France will charge a 20% VAT on all electricity supplies to align with European law. However, Bill No. 768, published on 23 June 2025, proposes reducing this VAT rate to 5.5% for energy, including electricity. The bill is currently at first reading in the Senate, and if approved, the reduced rate would apply retroactively from 1 August 2025. This aims to balance EU VAT alignment and consumer cost relief.

Source: fintua.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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