Beer VAT: Understanding Application and Rates in France

In France, beer is subject to the standard 20 % VAT rate, whether sold in shops, restaurants or bars. Non-alcoholic beers (≤ 1.2 % vol.) qualify for the 5.5 % reduced rate if classified as non-alcoholic beverages. On top of VAT come specific alcohol excise duties (social security contribution and beer duties).

Taxation does not stop at VAT. Excise duties and other specific taxes also influence the final price paid by the consumer.

These rules vary depending on whether the beer is sold in a shop, served in a bar or included in a mixed product.

Definition of beer and alcoholic beverages

Beer is a fermented beverage that is distinguished by its composition and alcohol content. Tax rules in France are based on the classification of alcoholic and non-alcoholic beverages, defined by the alcohol content by volume (ABV).

Characteristics of beer

Beer is made from grains, mainly malted barley, with water, hops and yeast. The fermentation process converts sugars into alcohol and carbon dioxide.

This beverage is a fermented drink and comes in a wide variety of styles. Its alcohol content generally ranges from 3% to 8% ABV.

Some beers may be lighter or stronger. In France, beer becomes an alcoholic beverage as soon as its ABV exceeds 0.5%.

Even low alcohol content is sufficient to bring it within the scope of this regulatory framework.

Differences between alcoholic and non-alcoholic beverages

The distinction is based on the percentage of alcohol contained in the product. This classification has direct consequences on taxation and the application of VAT.

• Alcoholic beverages: include beer, wine, spirits and any beverage with an alcohol content exceeding 1.2% vol. For beer, the threshold is set at 0.5% vol.
• Non-alcoholic beverages: include water, juices, soft drinks and so-called non-alcoholic beers if their ABV remains below 0.5%.

This distinction determines the applicable VAT rate and liability for other taxes such as excise duties.

Alcoholic strength by volume and classification

The alcoholic strength by volume (ABV) measures the proportion of pure ethanol in a beverage at 20 °C. It is expressed as a percentage of the total volume.

This criterion serves as a reference for classifying beverages. A beer containing 0.6% ABV is considered alcoholic, while a version with 0.4% ABV remains classified as non-alcoholic.

This rule applies to all fermented and spirit drinks. Beer is unique in that it has a stricter threshold than other drinks.

Some beers labelled as alcohol-free are still subject to the rules governing alcoholic beverages if they exceed 0.5% ABV.

VAT regulations applicable to beer

Beer is subject to specific rules regarding value added tax (VAT) in France. The regime depends on the alcohol content by volume, the nature of the product and its food use.

The reference texts can be found in the General Tax Code (CGI).

Standard VAT rate on beer

In France, the standard VAT rate is 20% according to Article 278 of the General Tax Code. This rate applies to most alcoholic beverages, including beer.

Regulations distinguish beers according to their alcohol content by volume (ABV). A beer becomes alcoholic as soon as its ABV reaches or exceeds 0.5% vol.

Above this threshold, it is subject to the standard VAT rate. Thus, even so-called “non-alcoholic” beers containing between 0.5% and 1.2% ABV are treated as alcoholic beverages for VAT purposes.

They do not benefit from the reduced rate applicable to conventional food products. In practice, beer is subject to the same tax regime as wine, cider and other non-distilled fermented beverages.

Reduced VAT rate and conditions of application

The reduced rate of 5.5% provided for in Article 278-0 bis of the CGI applies to products intended for human consumption. However, alcoholic beverages are excluded from this regime.

There are certain special cases. For example, ice cream flavoured with beer or wine, when sold to take away and the liquid component is not predominant, benefits from the reduced rate.

In this case, the addition of alcohol serves solely as a flavouring and does not alter the food nature of the product. The rule distinguishes between a solid food product containing an alcoholic flavouring and an alcoholic beverage.

Only the former are eligible for the reduced rate. In restaurants, beer served on the premises or to take away remains taxed at the standard rate.

Articles of the General Tax Code relating to beer

Two articles of the General Tax Code govern the taxation of beer:

• Article 278 CGI: sets the standard VAT rate at 20% applicable to alcoholic beverages, including beer.
• Article 278-0 bis CGI: defines the reduced rate of 5.5% for food products, but expressly excludes alcoholic beverages.

Administrative comments clarify the application of these rules. BOI-TVA-LIQ-30-10-10 states that food products containing alcohol as an additive, without alcohol being the predominant ingredient, are subject to the reduced rate.

These references make it possible to clearly distinguish between cases where beer is subject to the standard rate and those where a derivative product benefits from the reduced rate. Professionals must refer to these texts in order to apply the VAT regime correctly.

Specific VAT rules depending on the type of beer

Beer taxation depends mainly on its alcohol content by volume and the nature of the product sold. Tax rules distinguish between traditional beers, non-alcoholic or low-alcohol versions, and certain derivative products such as flavoured beers or ice creams containing beer.

Classic beer

Most beers sold in France are subject to the standard VAT rate of 20%. This rule applies to beers with an alcohol content of 0.5% vol. or higher.

This threshold covers the majority of products available on the market. When a consumer purchases beer in a shop or restaurant, the price includes this VAT.

Producers and distributors incorporate this rate into their pricing policy in order to comply with tax obligations. The tax is calculated directly on the retail price including VAT.

For example, a beer sold for €5 including VAT includes approximately €0.83 in VAT at a rate of 20%.

Non-alcoholic beers and low-alcohol beers

Beers labelled as “non-alcoholic” or low-alcohol are sometimes subject to different tax treatment. According to tax regulations, beer with an alcohol content of less than 0.5% by volume is considered non-alcoholic.

These products may be subject to a reduced VAT rate, generally set at 5.5% when they are considered non-alcoholic beverages intended for human consumption.

If the alcohol content reaches or exceeds 0.5% vol., even slightly, the product falls into the category of alcoholic beverages and is subject to the standard rate of 20%.

This distinction is important for manufacturers of so-called “light” or “non-alcoholic” beers. It directly influences the retail price and can create a significant difference between two seemingly similar products.

Flavoured beers and related food products

Flavoured beers, such as those mixed with fruit juice or other food additives, are subject to the same rules as alcoholic beverages if beer remains the predominant liquid ingredient. In this case, the standard VAT rate of 20 per cent applies.

Certain food products derived from beer, such as beer-flavoured ice cream or ice cream containing beer extract, may be eligible for the reduced rate of 5.5 per cent. This depends on whether they are classified as food products rather than alcoholic beverages.

The nature of the final product determines the VAT rate. If beer remains the main ingredient and retains an alcohol content above the legal thresholds, the standard rate applies.

If beer is used as a secondary ingredient in a food product, the reduced rate may apply.

Terms of sale and impact on VAT

The VAT rate applied to beer depends on its alcohol content and how it is sold. The distinction between consumption on the premises, takeaway sales and products intended for human consumption directly influences the applicable tax regime.

Takeaway

When beer is sold to take away, it is subject to the standard VAT rate of 20 per cent. This rate applies regardless of the final destination of the drink, as it is an alcoholic beverage.

There is an exception for certain regions such as Corsica, where consumption on the premises benefits from a reduced rate. Takeaway sales, however, remain taxed at 20%.

A distinction must also be made between non-alcoholic beers (less than 1.2% ABV). These are considered food products and may be subject to a reduced rate of 5.5% or 10%, depending on the case.

This difference creates a noticeable gap between a classic beer and a low-alcohol beverage.

A distributor must therefore clearly identify the alcoholic strength of the beverage before determining the applicable VAT rate.

Immediate consumption

Immediate consumption refers to sales made in bars, restaurants or any other place where the drink is served to be consumed on the premises. In this case, the VAT applied remains the standard rate of 20% for all alcoholic beverages.

Non-alcoholic food products consumed on the premises are subject to the reduced rate of 10%. This distinction highlights the specific tax treatment of alcoholic beverages.

In the catering industry, professionals must apply two different VAT rates to the same bill:

• 10% for food and non-alcoholic beverages,
• 20% for beer and other alcoholic beverages.

This rule requires rigorous accounting and invoicing management to avoid tax reporting errors.

Takeaway sales not intended for immediate consumption

Processed food products containing beer or wine, such as ice cream or flavoured desserts, are subject to the reduced VAT rate applicable to food products when they are sold to take away and are not intended for immediate consumption.

The regulations distinguish between beer as an ingredient in a food product and beer sold as a beverage. Beer ice cream falls into the category of human food and is eligible for the reduced rate, unlike a bottle of beer.

The same alcoholic ingredient may be taxed differently depending on whether it is sold as a beverage or incorporated into a food product.

Businesses must examine the exact nature of the product and its intended use in order to apply the correct VAT rate.

Excise duties and other taxes on beer

Beer sold in France is subject to several levels of taxation. It is subject to VAT, excise duties and sometimes specific contributions such as the tax on premixes.

These samples are taken according to specific rules that vary depending on the alcohol content and composition of the product.

Definition of excise duties

Excise duties are indirect taxes applied to certain consumer products such as alcohol, tobacco and energy products. Unlike VAT, they do not depend on the value of the product but on its quantity or pure alcohol content.

The legislation distinguishes between fermented beverages (such as beer) and distilled beverages. Beer is classified for tax purposes according to its alcohol content by volume (ABV).

Any beer-based beverage with an alcohol content exceeding 0.5% by volume is subject to excise duty.

Operators collect these sums and pay them into the Treasury.

Calculation of excise duties on beer

The calculation of excise duty on beer is based on the amount of pure alcohol contained in the drink. The higher the alcohol content, the higher the tax.

The calculation method takes into account the volume in hectolitres and the alcohol content. For example, a beer with an alcohol content of 5% by volume is subject to excise duty proportional to that alcohol content.

The exact amount is set each year by ministerial decree. In 2025, the increase was limited to 1.75%.

Certain categories, such as premixes, are subject to an additional tax on top of the standard excise duties. This rule aims to regulate sugary alcoholic beverages, which are often consumed by younger people.

Interaction between VAT and excise duties

VAT and excise duties are applied cumulatively. Excise duties are calculated first and then included in the VAT calculation basis.

VAT (at the standard rate of 20% for beer) applies not only to the price of the product, but also to the amount of excise duty.

Thus, a bottle of beer sold to the consumer includes:

• Product price excluding tax
• Amount of excise duties
• VAT calculated on the total (price + excise duties)

Even a beer labelled as “alcohol-free” may be subject to VAT if its alcohol content reaches 0.5% vol. or more, in accordance with the case law of the Council of State.

Comparison of VAT on beer with other beverages

Beer taxation is part of a broader framework in which wine, non-alcoholic beverages and certain food products containing alcohol are subject to specific VAT rates. These differences directly influence prices and tax obligations.

VAT on wine

In France, wine receives special treatment. Unlike beer, which is subject to the standard rate of 20%, wine remains taxed at the same rate but is not subject to the same excise duties as beer.

Wine, a product closely linked to French culture and agriculture, has long benefited from more favourable taxation.

For consumers, the final price of wine includes VAT at the standard rate, but without significant additional charges such as those applied to beer.

VAT on non-alcoholic beverages

Non-alcoholic beverages, such as mineral water, fruit juices or soft drinks, generally benefit from a reduced rate of 5.5% when they are considered food products.

Certain sweetened or energy drinks may be taxed at the standard rate of 20 per cent, depending on their composition and classification.

By way of comparison, a non-alcoholic beer with an alcohol content of less than 0.5% by volume can be considered a non-alcoholic beverage and therefore benefit from the reduced rate. A slightly stronger beer falls into the category of alcoholic beverages and is subject to the standard rate.

VAT on food products containing alcohol

Certain food products, such as desserts or chocolates filled with alcohol, are subject to specific rules. Even if they are intended for consumption, the presence of alcohol means that the standard rate of 20% applies.

This rule prevents products containing alcohol from being treated for tax purposes in the same way as basic foodstuffs, which are taxed at 5.5%. It applies, for example, to rum babas, alcoholic ice creams and certain confectionery products.

Businesses must be vigilant when it comes to this distinction. An error in the VAT rate can lead to a tax adjustment, especially in the catering and food distribution sectors.

In practice, companies must declare any food product containing alcohol at the standard rate.

VAT on beer in France: the applicable rates in detail

In France, beer is subject to the standard VAT rate of 20% for supermarket and specialist retailer sales. In the hospitality sector, the rate depends on consumption mode: 10% for drinks consumed on the premises (table service, bar counter), 20% for alcoholic drinks sold to take away. Non-alcoholic beers (≤1.2% ABV) qualify for the reduced rate of 5.5% in retail.

Microbreweries have no specific VAT regime, but those with annual turnover below the VAT exemption threshold (€85,000 in 2024) can operate under the basic exemption scheme — they don’t charge VAT to customers but also can’t reclaim it on inputs.

Excise duties: the tax most people forget

Beyond VAT, beer is subject to excise duties. In France, these are calculated per hectolitre of beer per degree Plato. In 2024, the rate is approximately €7.56 per hectolitre per degree Plato for large-scale brewers. Craft breweries producing under 200,000 hl/year benefit from a 50% reduction.

These duties are collected by producers and distributors, then remitted to the customs authority. They help explain the price gap between craft and industrial beer: the calculation is identical regardless of production volume, but for small breweries, the fixed cost per bottle is proportionally much higher.

Frequently Asked Questions

What is the VAT rate on beer in France?

Two main rates: 20% (standard) for takeaway beer (supermarket, off-licence, brewery purchase), and 10% (intermediate) for beer consumed on-site in a café, bar or restaurant. The difference comes from on-site consumption being considered a catering service.

Why is beer VAT lower in a bar than in a supermarket?

The 10% rate applies to on-site catering services since 2009. Beer at a bar counter is therefore taxed like a meal, not as a food product. Supermarkets sell merchandise (alcoholic food = 20%), not a service.

Does alcohol-free beer have the same VAT?

Yes, 20% takeaway and 10% on-site. The criterion is the sales method, not the alcoholic content. Non-alcoholic drinks (juice, soda, water) follow the same rule. The reduced 5.5% rate doesn’t apply to alcoholic drinks or their takeaway alternatives.

Are there excise duties in addition to VAT?

Yes. Beer is subject to excise duty of €7.82/hl per degree of alcohol (2024 rate) for large breweries (> 200,000 hl/year). Microbreweries pay half (€3.91/hl/° if < 200,000 hl/year). These excises are included in the ex-VAT price, then VAT is applied.

How is VAT calculated for a brewer?

On the ex-VAT price after excises. Example: a beer sold at €3 ex-VAT (including ~€0.12 excise for 33 cl at 5%) → VAT 20% = €0.60. Total price = €3.60. Direct sale at brewery: 20%. If brewer has a terrace: 10% for on-site consumption.