The French Tax Authorities updated their official guidance (BOI-TVA-GEO-20-20) on 2 September 2026. The update covers two areas: the exemption for certain transport services and VAT-exempt imports into La Réunion.
- Air transport now exempt
Article 295-1-1° of the French Tax Code exempts certain transport services within Guadeloupe, Martinique and La Réunion from VAT. Until now, the exemption only covered sea transport of passengers and goods. The 2026 Finance Act extends it to air transport that meets the conditions set out in the law. Both modes of transport now get the same treatment.
- A new list of exempt imports for La Réunion
Article 50 duodecies of Annex IV to the French Tax Code exempts certain categories of goods from import VAT. A ministerial order of 11 December 2025 revised this list. It now includes certain essentials, such as food, hygiene and personal care products. On the other hand, certain computers, mobile phones and data transmission equipment have come off the list and are now subject to import VAT. The exemption is therefore focused on essential goods. The new list applies until 31 December 2027.
The Tax Authorities also point out that an exempt transaction does not automatically mean losing the right to recover input VAT. Where the conditions are met, VAT incurred on costs relating to exempt transactions remains deductible.
