VAT changes in France

[Rollin]

An article in Le Figaro.

The European Commission have issued France with an informed opinion, which means that VAT on sales of horses will increase from 5% to 19.6%. There will of course be a protest.

When we purchased our two Shagya mares from the Hungarian National Stud we paid 19.6% VAT so this does seem quite fair. Other member states have protested and so France will have to come into line with the rest of Europe.

I am told by a member on another forum that this will affect semen sales out of France.

I cannot protest as I believe in a level playing field. I am much more concerned about the economic climate than the VAT rate.

 

[HappyHooves]

If this affects 'the rest of Europe' then what is the position in the UK? I have only bought 'second hand' horses so presume I have not to pay VAT! Do youngsters bought from the stud have a VAT rate applied in the UK or is this just the usual thing about Europe and the UK - aren't we part of Europe anymore?

 

[Rollin]

It depends on whether the vendor VAT registered, We are, so must charge VAT but we reclaim VAT on what we purchase.

Many small breeders are not VAT registered, in addition some sp may be inclusive of VAT, just as when you shop in Tesco or M&S.

 

[Pendragon]

In Germany VAT changed from 7% to 19% on horse sales in 2009.
France moaning about higher VAT? Then look at what happens to Germany at the moment with the first counties introducing an annual tax on every horse kept. A tax of 750 Euros per horse per year is recommended. They are nuts! This will kill the German horse market and riding sport, but they do not care.