TVA is French for VAT, or
value added tax.
Not all services are taxed at the same rate. The
standard rate of 8% applies to most goods supplied and to nearly all services. Basic necessities, mainly food and drink (excluding alcoholic drinks), medicines and also certain newspapers, magazines and books, are taxed but only at the
reduced rate of 2.5%. Finally overnight stays including breakfast are subject to the
special rate of 3.8%.
A whole range of services are exempt from VAT, as in the field of health, social services, teaching (education), culture, money and capital transactions (however, asset management as well as debt collection are taxable), insurance, leasing of property and the sale of property.