5 for sales to eat on the spot is from July 1 2009 a reality

Although the law of development and modernization of tourist services, in which the provision for the decline of the VAT in the catering sector, has been integrated is not yet finally adopted, the application of the reduced rate at 5.5 for sales to eat on the spot is from July 1, 2009 a reality.

The Bercy have, in the last days of June, given the first practical details that this tax cut long-awaited by professionals of the sector, foodservice and consumer can be implemented.

A decline of broad application

So far, the benefits of restoration were subject to the normal rate of 19.6 VAT, except for take away sales which were already of a reduced rate of 5.5. Since July 1, the reduced rate is extended to sales to eat on the spot. And this decline has broad since it concerns all the institutions specialized in the restoration or the consumption of drinks (restaurants, bars, cafes), but also professionals offering catering in sites dedicated to another activity (theatre, cinema, Museum, sports club, shopping centre, service station, etc.). However, this decline in the rate of VAT is not the sale of alcoholic beverages.

And specifically concerning the caterers, the tax administration indicated that they could apply a reduced rate of VAT to all the benefits they realize benefits of provision of hostesses, motor carriers, drivers who are taxed at the full rate and animation benefits falling rates are.

Note: services of Bercy have also noted that when a taxpayer offers its clients a global billing for services taxed at different rates (example: a meal with a glass of wine included), it belongs to the professional to ventilate the revenue corresponding to each rate, simple and economically realistic manner under its own responsibility.

A number of commitments to respect

In return for this reduction in the rate of VAT, professionals are committed, under the "future of the restoration contract" signed on 28 April 2009, with the State, to reflect fully the gains obtained through the application of the reduced on prices, employment creation and improvement of the situation of the employees and the modernization of the sector.

Actually since July 1, in the traditional restoration sector, for example, professionals must reflect the decrease in VAT on at least 7 of the 10 following products: an entry, a flat hot, dish of the day, dessert, menu entry-dish, a dish-dessert menu, a child menu, soda or fruit juice, mineral water, coffee or tea. Thus, by calling his meal with the products on which the Restorer has chosen to reflect the decrease in VAT, any client should able to benefit from a reduction in his total score equal to 11.8 compared to the previous prices. And to inform their customers of these new rules and their choice, conservators must identify visible and legible manner, outside and inside their establishment, the goods concerned by the decline in prices.

For their part, lemonade and cafés must reflect the reduction of VAT on the price of coffee, tea and a cool drink of their choice.

Deletion of certain support measures for the foodservice sector

Development and modernization of tourist services Bill provides that devices in hotels, cafes and restaurants (UNHCR), which had been implemented in recent years in the expectation of this decrease in VAT and which were to be completed in 2010, should be deleted in advance starting July 1, 2009. These include support to compliance of establishments with the regulations in force (supplies and exceptional depreciation).

Finally, an annual contribution on sales of food to feed the modernization of the restoration fund would be created. The rate would be 0.12 up on the fraction of the amount of taxable sales of the previous year or the last closed fiscal year that exceeds 200 000 duty-free . Although it is not yet finally passed, it should apply as early as July 1.