• The amended Finance Act for 2011 increased the reduced VAT rate from 5.5% to 7%.  The new rate applies to food for on-site consumption (restaurants) and for immediate off-site consumption (fast food and certain supermarket prepared foods). Essential foodstuffs remain at 5.5%. It includes water, drinks without alcohol content and products intended for human consumption. Sweets and chocolate remain at 19.6%. The new reduced VAT rate applies as from 1 January, 2012.
  • The Finance Act for 2012 introduced two new taxes on soft sugary drinks. The first one applies to all soft drinks with added sugar, and the second one applies to soft drinks which are artificially sweetened. Beverages without added sugar such as natural fruit juices and beverages with alcohol content are excluded from the scope of the new tax. Infant formula is also excluded in addition to liquid food preparation intended for the infirm. Both contributions will be paid by manufacturers and processors, as well as French importers. The amount of both contributions is set at €7.16 per hectolitre. The tax will be raised every year in line with the official inflation rate of the previous year.