The French National Assembly have recently adopted a finance bill which includes a new 2% tax on hotel stays where rates exceed EUR 200 per night. This new tax will be declared, collected and controlled under the same procedure as VAT, and once ratified will be due as from 1 November 2011.  This is part of the French government’s austerity plan, currently debated in parliament introducing a package of fiscal measures designed to reduce the public deficit.

The Assembly adopted the bill on 7 September 2011, but it is not yet in force pending ratification by the French Senate.