VAT: France’s Fiscal Backbone for 70 Years and Counting

• VAT is a mainstay of France’s fiscal policy, bringing in over half of the country’s tax revenue
• Introduced in 1954 to simplify revenue collection after WWII
• VAT is an ‘invisible’ consumption tax that applies to everyone regardless of income
• VAT is included in the price of anything bought in France or any European country
• VAT is measured and collected by each intermediate business in the production process
• VAT brought in over 176 billion euros in 2023
• VAT was first introduced in France in 1954 and quickly adopted in countries around the world
• VAT is a criteria for countries wanting to join the European Union
• VAT is a regressive tax, applying to all consumers regardless of income levels

Source: rfi.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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