France : End of Reduced VAT Rate on Fixed Charges for Gas and Electricity Bills effective from 1 August 2025
As of 1 August 2025, the reduced 5.5% VAT rate previously applied to the fixed portion of gas and electricity bills, covering elements such as subscriptions and the network access contribution, has been abolished under the 2025 Finance Act.
From now on, the entire bill, including both the fixed and variable components, is subject to the standard 20% VAT rate.
This change was driven by the need to align with EU law and Article 98 of Council Directive 2006/112/EC, which prohibits the application of different VAT rates to a single service.
