Restaurant VAT 2026: Rates, Calculation and Obligations
Finance & Margins · June 17, 2025 · By Alex Dondelinger · 4 min read
In French food service, VAT (TVA) applies at three main rates:
- 5.5% (deferred takeout),
- 10% (immediate consumption on site, or delivery),
- 20% (alcohol and specific products).
Mastering VAT means optimizing your cash flow and avoiding a costly tax reassessment. Use our mini-calculator for an instant conversion between excl.-VAT (HT) and incl.-VAT (TTC) prices.
Which VAT Rates Apply in Food Service?
VAT applies depending on the product offered and how it is consumed:
| Rate | Products | Consumption method |
|---|
| 5,5 % | Packaged pastries, prepared sandwiches | Takeout, deferred consumption |
| 10 % | Meals, non-alcoholic drinks served open | On site or delivery |
| 20 % | Alcohol, special products | All modes |
Specific cases: sandwich + beer → beer at 20%, sandwich at 5.5%
Practical Everyday Examples
- Pizza + soda on site: VAT 10%
- Home delivery: VAT 10%
- Wine sold as takeout: VAT 20%
- Packaged viennoiserie: VAT 5.5%
How to Calculate VAT Precisely
Here are the essential formulas for your day-to-day calculations:
- Price incl. VAT (TTC) = Price excl. VAT (HT) × (1 + VAT rate)
- Price excl. VAT (HT) = Price incl. VAT (TTC) ÷ (1 + VAT rate)
Practical Example:
For a dish at €15 excl. VAT, eaten on site (VAT at 10%):
- Price incl. VAT = €15 × 1.10 = €16.50
- VAT collected = €1.50
VAT Regimes and Filing Obligations
| Regime | Who is it for? | Filing frequency | Specifics |
|---|
| Franchise en base (VAT exemption threshold) | Revenue < €91,900 excl. VAT | None | Mention "TVA non applicable – 293 B CGI" (VAT not applicable, Article 293 B of the French Tax Code) |
| Simplified regime (régime réel simplifié) | Revenue ≤ €840,000 excl. VAT | 2 installments + annual CA12 return | Final adjustment, refund if overpaid |
| Normal regime (régime réel normal) | Revenue > €840,000 excl. VAT or voluntary option | Monthly CA3 return (quarterly if VAT < €4,000/year) | Closer cash flow tracking |
💡 Calendar tip: print the deadline memo (CA12, installments, CA3) and put it up in your office. A missed deadline means a 10% surcharge and late-payment interest.
Digitalization and Electronic Invoicing (From 2026)
Since 2018, every POS must already be NF525-certified (the French certification for tamper-proof cash register software) to guarantee the inalterability, security and archiving of Z-reports. The next step:
- Mandatory electronic invoicing
- July 2026: mandatory receipt of electronic invoices (all businesses).
- January 2027: mandatory issuance for businesses with revenue above €50M;
- January 2028: extension to all businesses (subject to the final timetable).
- Automatic VAT transmission Each sale will have to send the details broken down by rate to the tax authorities via the Chorus Pro platform or a PDP (partner e-invoicing platform, plateforme de dématérialisation partenaire).
- "Ready for 2026" checklist
- ✅ NF525-compatible POS or PMS + e-invoicing module.
- ✅ POS able to export an XML/UBL feed with the three rates.
- ✅ Internal procedure to reconcile the Z-report, Fullsoon exports and CA3 returns.
Optimizing Your Restaurant's VAT Management With Data
A business software like Fullsoon is not just a forecasting tool; it also becomes a tax ally:
- Automatic breakdown Sales are categorized at checkout: 5.5%, 10%, 20%. No more manual sorting in Excel.
- "Margin excl. VAT vs. incl. VAT" dashboard
- Identify dishes with a low margin excl. VAT but high VAT.
- Boost the promotion of 5.5% recipes (pastries, viennoiseries), especially for delivery.
- Dynamic menu adjustment If the forecast shows overstock of an ingredient used in a 5.5% product, push it as a "dish of the day"; you clear the stock while improving margin.
- Express audit A reporting anomaly (e.g., alcohol at 10%) is detected the same evening: you correct it before the monthly close.
Common Mistakes and Best Practices
Mistakes to avoid
🔴 Mixing alcoholic drinks and soft drinks on the same POS button.
🔴 Forgetting to change the rate when a dish goes from "on site" to "deferred takeaway".
🔴 Neglecting delivery fees: the "transport" portion must always be invoiced at the same rate as the delivered dish.
🔴 Leaving gaps > 1% between the Z-report total and the total declared on the CA3: a red flag for the DGFiP (the French tax authority).
Simple best practices
🟢 Set up your PLUs (item codes) with a color code per rate (server view + back office).
🟢 Export the broken-down sales journal every evening; at month end, the gap should be zero or explained.
🟢 Train your team: a server who can tell 5.5% from 10% avoids a lot of re-invoicing.
🟢 Before each new menu, run a mini VAT audit: 10 minutes of checking is worth more than €10,000 of reassessment.
Frequently Asked Questions About VAT in Food Service
Frequently Asked Questions
Which rate applies in a coffee shop that serves on site and takeout?
• On-site consumption: 10%
• Drinks or pastries taken away for deferred consumption: 5.5%
• Alcoholic drinks (on site or takeaway): 20%.
Caterer with on-site service: one or two VAT rates?
The food service provision (meal + staff) is taxed at 10%. Alcoholic drinks served during the event remain at 20%.
Do I have to file VAT separately if I open a second location?
If both restaurants belong to the same legal entity, you can file a single return, breaking down sales by site. If they are separate companies, each entity files its own VAT.
How should delivery fees be handled?
The "transport" portion must be invoiced at the same rate as the delivered dish: 10% for a delivered burger, 5.5% for a packaged pastry shipped for deferred consumption.
What is the risk if there is a gap between the Z-report and the CA3 return?
An unexplained gap (> 1%) is a warning sign for the DGFiP: it can lead to a targeted audit, a 10% surcharge and late-payment interest.