Adjustment of VAT rates for human food, animal food, and agricultural products in France

The Finance Law 2022 subjects all products intended for human use to the reduced VAT rate of 5,5%, regardless of the stage of transformation within the product chain. This reduced rate remains inapplicable to products that were excluded by the previous law such as alcoholic beverages, confectionery products... To whom do these VAT rates refer?

Reduced 5,5% VAT rate now applies to: 

• foodstuffs intended for human consumption;
• products normally intended for use in the preparation of these foodstuffs;
• products normally used to supplement or replace these foodstuffs.

On the other hand, the intermediate 10% VAT rate applies to products for agricultural use when they are normally intended for use in agricultural production and that are not intended for animal feed. Products of agricultural origin that have not undergone any processing, products of fishing, pisciculture, or poultry farming that have not undergone any processing. 

Finally, the scope of the intermediate rate of 10% for products intended for animal consumption is also specified. Foodstuffs intended for animal consumption, products normally intended for use in the preparation of these foodstuffs, and those normally used to supplement or replace these foodstuffs are subject to this rate if one of the following conditions is met:

• these are products of agricultural origin, fishing, fish farming, or poultry farming that have not undergone any processing;
• these are raw materials, compound feed, or additives intended for animals producing foodstuffs that are themselves intended for human consumption.